BAKU, Azerbaijan, October 16. Oil export revenues from OPEC countries and Russia saw a nearly $20 billion increase between June and September 2023, Trend reports.
According to the estimations of the International Energy Agency (IEA), this is primarily due to Saudi Arabia’s voluntary reduction in output.
Prior to this, core producers within the OPEC+ alliance had already collectively cut supply by 1.7 mb/d starting in May. However, the market response was minimal, with North Sea Dated oil prices remaining around $75 per barrel, resulting in export earnings declining by $2.2 billion to $72 billion the following month, the agency noted.
It wasn’t until July, when Saudi Arabia further reduced output by an additional 1 mb/d, that oil prices began to surge, leading to a substantial boost in revenues for both OPEC and Russia, reaching an estimated $92.2 billion in crude export revenues in September. This marked the highest level since October 2022, the IEA pointed out.
At the same time, Russia's oil export revenues have witnessed a notable increase since June ($18.8 billion in September 2023), with the influence of growing global prices magnified by reduced discounts on its crude and oil products. However, this surge in profits is not exclusive to Russia, as various oil-producing countries, along with local, national, and international oil companies, are also enjoying higher earnings.
For instance, Iran, exempt from OPEC+ supply restrictions, has observed a 30-percent uptick in oil shipments since January, resulting in a remarkable 60-percent surge in oil export revenues ($4.7 billion in September 2023). Even Saudi Arabia, despite implementing the most substantial OPEC+ production cuts, experienced a boost in export revenue in September ($22 billion), fueled by crude oil prices surpassing $90 per barrel and product margins approaching record highs.