BAKU, Azerbaijan, December 19. Russia's oil exports have increased to a 7-month high ahead of EU embargo on crude from the country, the International Energy Agency (IEA) said, Trend reports via the latest oil market update from the IEA.
According to the statistics, Russian crude deliveries increased by 270,000 b/d to 8.1 mb/d, the highest since April, as diesel exports rose by 300,000 b/d to 1.1 mb/d.
Meanwhile, crude oil loadings were largely unchanged on a monthly basis, even though exports to the EU dropped by 430,000 b/d to 1.1 mb/d. At the same time, shipments to India reached a new high of 1.3 mb/d.
However, export revenues, declined by $0.7 billion to $15.8 billion on lower prices and wider discounts for Russian-origin products, the IEA said.
"We have updated our methodology for estimating Russian export revenues to include Argus’s product-specific discounts. We have backdated these discounts to March 2022. As a result, 2022 monthly revenue estimates have been revised down by $1 billion on average," the agency noted.
The agency pointed out that loadings of Russian crude to Türkiye also fell by 150,000 b/d, while State Oil Company of the Azerbaijan Republic (SOCAR), that owns the 200,000 b/d Aliaga refinery in Türkiye, has reportedly paused purchases of Russian feedstock for the plant.
"By contrast, exports to India surged to 1.3 mb/d, a new record. Volumes to China, including seaborne and pipeline, were unchanged. Some Indian refiners have reportedly started accepting Russian insurance, buying crude on delivered basis. The share of EU in Russian oil exports fell to 28 percent. India’s share expanded to 18 percent," the report added.
The introduction of a $60/b cap on Russian crude oil created an unexpected logistical problem not only for Russian, but also for Kazakhstan’s crude oil exports, as the Turkish authorities began to demand insurance confirmation, to allow crude oil vessels to pass through the Turkish Straits. At some point in early December, 30 ships, mostly carrying Kazakh crude oil, were waiting to pass southward through the Bosphorus and Dardanelles or were being loaded at the Black Sea ports, the IAE noted.
"Meanwhile, Russia is getting ready to switch product trade to a long-haul basis. Rosmorport, a Russian government agency regulating and providing maritime services in the country’s ports, has established a reverse lightering zone for clean products and LPG near the Baltic Port of Ust-Luga. Product from smaller tankers loading at Baltic ports will be accumulated in long-range vessels for exports to destinations further afield. This is also expected to optimise the use of ice breaker or ice class tankers, the availability of which is restricted by the EU maritime service ban," the report concluded.