Russia’s oil and fuel export revenues reached US$15.8 billion (1.43 trillion rubles) in January, marking a US$900 million increase from December, according to the International Energy Agency (IEA).
This surge occurred despite ongoing sanctions, with the rise attributed to higher oil prices and stable export volumes.
The IEA reported that Russia’s crude oil and oil product exports in January remained consistent with December’s volumes at approximately 7.4 million barrels per day (mbbl/d).
Crude oil supplies saw an increase of 100,000 barrels per day (bpd) to 4.6 mbbl/d, while oil product exports decreased by the same amount to 2.8 mbbl/d.
Despite new U.S. sanctions imposed in early January, linked to the ongoing conflict in Ukraine, the IEA noted that these measures have not yet significantly impacted global oil supply.
“Iranian crude oil exports are only marginally lower, while Russian flows so far continue largely unaffected,” the agency stated in its monthly report.
Russia’s oil production in January rose by 100,000 bpd to 9.2 mbbl/d, surpassing the OPEC+ quota of 8.98 mbbl/d, according to the IEA.
However, the Organisation of the Petroleum Exporting Countries (OPEC) reported a slight decline in Russia’s crude oil output to 8.98 mbbl/d in January from 9 mbbl/d in December.
Notably, all Russian oil was sold above the Western-imposed price cap of US$60 per barrel.
This suggests that Russia has found ways to circumvent the price cap mechanism implemented by Western countries.
In response to the new U.S. sanctions complicating crude oil sales, Russian refineries are increasing their crude oil processing to boost fuel exports.
From January 15 to 19, refining activity saw a 2 per cent increase, or 108,000 barrels, compared to the first week of the year.
While the immediate effects of the sanctions seem limited, some measures are expected to take effect before March.
The oil industry will be closely watching how these delayed impacts might influence Russia’s export capabilities and global oil markets in the coming months.
As geopolitical tensions continue to shape the energy landscape, Russia’s ability to maintain its oil revenues despite international pressure highlights the complex challenges facing global efforts to constrain its energy exports.
