- Russia’s oil revenues increased by $900 million in January, totaling $15.8 billion, despite new Western sanctions, according to the International Energy Agency. This rise has been attributed to “deceptive shipping practices” employed by Moscow.
- Russia also exceeded OPEC+ production limits by producing 9.2 million barrels per day and sold all oil above the $60 per barrel price cap set by Western nations.
- The IEA notes that additional Western trade restrictions will take effect either in late February or March.
Full Story
Russia’s commercial oil revenues increased by $900 million in January despite the implementation of new Western-imposed sanctions at the start of the year. This comes according to a report released Thursday by the International Energy Agency (IEA).
How did Russian oil revenue increase despite sanctions?
The report states that Russia earned a total of $15.8 billion from oil exports last month. The IEA attributes the increase in revenue to “deceptive shipping practices,” including the use of aging, anonymously owned vessels — commonly referred to as the “dark fleet” — to transport oil.
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Additionally, Russia exceeded international oil production and pricing caps last month. The country increased its daily oil output by 100,000 barrels compared to December, reaching 9.2 million barrels per day. This figure surpassed the 8.98 million barrels per day limit set by OPEC+, a coalition of oil-producing nations that includes Russia.
The IEA also noted that all Russian oil sold in January was priced above the $60 per barrel cap set by Western nations.
What happens next?
Despite these figures, the report states that Russia’s fossil fuel industry has not yet experienced the full effects of all sanctions imposed this year. Additional trade restrictions from Western countries are scheduled to take effect in either late February or March.
RUSSIA’S COMMERCIAL OIL REVENUES INCREASED BY HUNDREDS OF MILLIONS OF DOLLARS LAST MONTH-
DESPITE NEW WESTERN-IMPOSED SANCTIONS IMPLEMENTED AT THE START OF THE YEAR.
THIS COMES ACCORDING TO A REPORT RELEASED THURSDAY BY THE INTERNATIONAL ENERGY AGENCY.
PROFITS FROM RUSSIAN OIL EXPORTS INCREASED BY 900 MILLION DOLLARS FROM DECEMBER, TO A JANUARY TOTAL OF 15.8 BILLION DOLLARS.
THE IEA SAID THIS WAS POSSIBLE DUE TO DECEPTIVE SHIPPING PRACTICES EMPLOYED BY MOSCOW-
INCLUDING THE USE OF AGING, ANONYMOUSLY OWNED VESSELS, KNOWN AS THE DARK FLEET, TO TRANSPORT OIL.
RUSSIA WAS ALSO ABLE TO SKIRT INTERNATIONAL CAPS ON BOTH OIL PRODUCTION AND PRICING IN JANUARY.
THE COUNTRY INCREASED ITS DECEMBER PRODUCTION LEVELS BY 100,000 BARRELS OF OIL PER DAY-
FOR A DAILY OUTPUT OF 9.2 MILLION BARRELS.
WHICH SURPASSED THE LIMIT OF 8.98 MILLION BARRELS PER DAY SET BY OPEC+, A COALITION OF OIL-PRODUCING NATIONS THAT INCLUDES RUSSIA.
MEANWHILE, ALL OF THE RUSSIAN OIL SOLD A MONTH AGO WAS PRICED ABOVE THE 60 DOLLAR PER BARREL WESTERN-IMPOSED CAP.
HOWEVER, RUSSIA’S FOSSIL FUEL INDUSTRY STILL HAS NOT FELT THE FULL IMPACT OF ALL SANCTIONS IMPOSED ON IT THIS YEAR.
THE IEA NOTES THERE ARE STILL SEVERAL TRADE RESTRICTING MEASURES FROM THE WEST THAT HAVE YET TO GO INTO EFFECT-
BUT WILL DO SO EITHER IN LATE-FEBRUARY OR MARCH.
FOR STRAIGHT ARROW NEWS, I’M JACK AYLMER.
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