(Photo by Dmitry Korotayev/Kommersant Photo via Getty Images)
- Russia is shipping the most oil in nearly four months, Bloomberg data shows.
- That comes despite commitments to trim production by 300,000 barrels a day through year-end.
- Brent crude prices slipped on Tuesday, trading around $83 a barrel.
Russia's oil exports are edging towards their highest level in four months, despite the nation's earlier promises to deliver hefty production cuts with Saudi Arabia.
Russia shipped around 3.48 million barrels of oil a day in the four weeks ending November 5, slightly higher than the four-week period ending October 29. That represents one of the highest shipping volumes of crude Russia has seen since July, Bloomberg data shows.
The increase comes even as Russia has promised to prolong its 300,000 barrel-a-day production cut through the end of the year, part of its efforts with Saudi Arabia to boost oil prices. Russia's crude exports have actually been cut just a third of that amount, Bloomberg estimated, meaning the rest of the promised deficit will have to be made up by cutting exports of refined oil products, like diesel.
Meanwhile, the price of Brent crude, the international benchmark, continued to slip on Tuesday, trading 2.5% lower to $83 a barrel. US oil prices, meanwhile, fell below $80 for the first time since August.
Higher oil exports have been boosted Russia's war revenue, as its economy is heavily dependent on its energy commodities trade. The nation's total revenue from oil and gas exports jumped to its highest level since April 2022, Bloomberg reported, with budget proceeds from oil and gas taxes rising to $17.6 billion that month.
Still, economists have sounded the alarm for Russia's economy as it strains under the weight of sanctions and broken trade ties since it invaded Ukraine in 2022. Moscow just planned a record-high military budget for 2024, and the nation's wartime economy is putting future growth at serious risk, according to the Carnegie Endowment.