Moscow is sending massive amounts of crude to the market, even as it announced it will extend its voluntary decision to cut oil exports until the end of the year, along with OPEC+ partner Saudi Arabia, reports Bloomberg.
According to data analyzed by Bloomberg, flows of Russian crude oil exported by sea are at their highest level in three months.
Between August 17 and September 17, the national average of deliveries rose to 3.34 million barrels per day (bpd), an increase of approximately 465,000 bpd compared to the previous four weeks, with the advance being registered especially in the ports of the Baltic Sea and the Black Sea.
Some increases in Russian crude oil exports were expected, according to Agerpres.
Russia will extend its voluntary decision to reduce oil exports by 300,000 barrels per day (bpd) until the end of the year, “to maintain stability and balance” on the oil market, Deputy Prime Minister Alexander Novak announced recently.
Russia, the world’s second largest oil exporter, has cut production and exports along with Saudi Arabia, in addition to current supply cuts decided by the OPEC+ group (composed of the Organization of the Petroleum Exporting Countries and other major global crude producers).
But the calculations show that Russia’s supplies have more than doubled from what Novak said was predicted.
The increase in exports comes against the background of high crude oil prices, following robust demand and cuts decided by the OPEC+ group, and in particular by Saudi Arabia, which has pledged to keep production below nine million barrels per day until the end of the year. the lowest production target since 2011, excluding the pandemic.
This month, Brent crude topped $90 a barrel for the first time this year after Saudi Arabia and Russia announced a combined output cut of 1.3 million barrels per day (bpd) until the end of 2023. Brent crude is now trading at around $95 per barrel, while Russian Urals crude is above the G7 (group of heavily industrialized nations) price ceiling of $60 per barrel.