Russia Continues to Earn over $100 Million per Day from Oil Sales to Europe
Russian revenues from gas exports are believed to be equal to the revenue last year
Russia is continuing to earn more than $100 million every day from gas sales to Europe, despite cutting major EU consumers' deliveries in the past week, according to data from Independent Commodity Intelligence Services (ICIS).
As natural gas prices soar, Russian revenues from gas exports are believed to be equal to the revenue last year when there was no limitation on gas flows to Europe.
Tom Marzec-Manser, head of gas analytics at ICIS, told Bloomberg:
“It’s shocking to see that, despite the 75% cut in daily supply by Gazprom to Europe, the daily receipts are still in line with where they were a year ago, and certainly higher than pre-Covid times."
Russia has significantly lowered supply to major European consumers like Germany and Italy in the last week.
The move came despite buyers bowing to Putin’s demand to open accounts in rubles at Gazprombank for processing of the payments the way Russia wanted to.
The annual maintenance at Nord Stream will completely halt deliveries through the pipeline for two weeks in July, reports reveal.
The maintenance will leave Europe further scrambling to fill gas storage sites to adequate levels before the winter.
Despite the embargo on Russian seaborne oil by the EU, Russia is still enjoying high oil and gas prices.
Even Western sanctions against Russia, which were designed to hurt its oil revenues and war chest, Moscow is still getting a lot of additional billions of U.S. dollars in oil and gas revenues.
Russia even expects to receive as much as $6.37 billion in additional oil and gas revenues in June.
Energy commodity prices have rallied since the Russian invasion of Ukraine.
Meanwhile, China imported a record volume of Russian crude oil earlier this year, with arrivals surging by 55 percent to nearly 2 million barrels per day (bpd).
As Neon Nettle reported:
This has made Russia the top oil supplier to the world's leading crude importer—putting it ahead of Saudi Arabia for the first time in a year and a half.
As Reuters reported:
Thanks to the increased shipments of cheap crude to China, Russia became the top supplier to the world's biggest oil importer for the first time in 19 months, per Reuters estimates
A record volume of cheap Russian oil, which sells at steep discounts to crude from other countries, made its way to Chinese refiners last month, according to figures from China's General Administration of Customs.
China imported 1.98 million bpd of Russian crude oil in May, up by 55 percent from May last year and up from 1.59 million bpd of Russian oil imported in April 2022, the data showed.
This compares to 75 percent of Russia's oil exports which were being shipped to Europe earlier this year, Alexander Dyukov, chief executive of Gazprom Neft, said last week.
Still, analysts doubt that the Asian market can absorb all 4 million bpd of oil that Russia was sending to Europe before the Russian invasion of Ukraine.