### August Russian Oil Exports Hit Lowest Level in Three Years
Russian oil exports in August 2024 reached their lowest volume in three years, totaling around 7 million barrels per day (b/d), a decline of 290,000 b/d from the previous month, according to analysis by the International Energy Agency (IEA) based on trade data from Kpler and Argus Media.
This sharp drop marked the second consecutive month of decline in Russian oil exports, a trend that underscores the ongoing impact of global sanctions and market dynamics on Russia’s energy sector. The IEA attributed part of this decline to heightened field maintenance and possible efforts to meet OPEC+ production cut obligations.
**Monthly Breakdown:**
– **Crude Exports:** Russian crude exports diminished significantly, dropping by 270,000 b/d to approximately 4.4 million b/d, a year-over-year decrease of 270,000 b/d. This reduction is particularly notable as it follows a seasonal contraction.
– **Product Exports:** Product exports remained relatively stable at 2.65 million b/d, despite a summer demand uptick and stagnant refinery runs. However, there was a 240,000 b/d fall in light product exports (naphtha, gasoline plus gasoil) which was partially offset by a 230,000 b/d rise in fuel and VGO (Vacuum Gas Oil) loadings.
**Price and Revenue Impact:**
– The average commercial export revenue for August declined by $1.6 billion month-over-month to $15.3 billion, a level not seen since July 2023. This decline was driven primarily by lower volumes and prices. Specifically, product revenue dropped by $480 million to $5.6 billion, while crude revenue decreased by $1.2 billion to $9.6 billion.
– The weighted average price of Russian crude declined by $3.50-4.00 per barrel over the month, narrowing the gap