Russian Oil Exports Reached New Heights

Written by Camilla Jessen

Feb.27 - 2024 12:15 PM CET

Even with a drop in Sokil oil shipments, Russia's oil exports over the past four weeks have reached their highest point in nearly four months.

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Bloomberg reports that the surge in Russia's oil exports was driven by a significant increase in VSTO oil shipments, compensating for the shortfall of Sokol.

The average shipments over four weeks were about 190,000 barrels per day higher than Russia's committed export volume. In one week, exports surged by 365,000 barrels per day, reaching 3.5 million barrels daily. This figure is 215,000 barrels per day over the target.

The shortage of "Sokol" oil shipments is due to a scarcity of tankers for transport.

Indian refineries are wary of US sanctions and have voiced concerns over the high costs of supplies. This month, three shipments of Sokol oil were sent to India, and several were rerouted to China. However, about 14 shipments, totaling approximately 10 million barrels, remain onboard.

Russian oil exports' value reached a three-week peak, climbing to $1.73 billion in the week ending February 25, up from $1.55 billion the week before. The four-week average revenue also saw an increase, rising by $115 million to $1.7 billion weekly.

China received about 1.45 million barrels of oil daily via tanker. The country's sea imports of oil went up by 800,000 barrels daily, received from Russia directly or via Kazakhstan.

Shipments to India averaged around 905,000 barrels per day, indicated by ships destined for the country.

The numbers for both China and India are expected to rise as more ports become available for ships that have not yet declared their final destinations.