Russian oil exports hold steady despite sanctions, but prices plummet

Bloomberg reported the information, citing the International Energy Agency (IEA).

According to the IEA’s latest monthly report, Russian producers exported 7.28 million barrels per day of crude and petroleum products last month—only 100,000 barrels per day less than in January. The Biden administration had imposed its toughest sanctions yet on Russia’s oil sector in early January, blacklisting multiple tankers, traders, insurers, and two major producers—Gazprom Neft PJSC and Surgutneftegas PJSC—whose grace period ended on Feb. 27.

“After a brief period of uncertainty, export volumes mostly recovered,” the IEA noted. However, the restrictions tightened vessel availability, pushing up shipping costs and dragging Russian crude prices lower. The average price for Russian crude dropped by nearly $7 per barrel to $61.09 in February, with some cargoes from the Baltic port of Primorsk falling below the G7-imposed price cap of $60.

Despite maintaining export volumes, Russia’s oil revenues took a hit, plunging by $2.4 billion to $13.3 billion last month, the agency estimated. The decline was partly driven by Ukrainian drone strikes on Russian refineries, which disrupted fuel exports. Meanwhile, Russia’s daily crude production stood at 9.12 million barrels in February, slightly above its OPEC+ commitments.