Oil and gas revenues for Russia’s budget fell to $5.8 billion (528.6 billion Russian rubles) in June, down 26.4 percent from the same month last year, data from the Russian Treasury Ministry showed on Wednesday emerges.
Compared to May 2023, Russia’s oil and gas budget receipts also fell by 7.4 percent in June, compared to $6.3 billion (570.7 billion rubles) in the previous month.
Earlier this week, the ministry said the average price of Russia’s flagship Ural crude oil averaged $52.17 per barrel between January and June 2023, compared to an average Ural price of $84.09 per barrel over the same period in 2022. In June alone, the average Urals price was $84.09 per barrel and $55.28 per barrel, below the average price of $87.25 per barrel in June 2022 .
Revenue from Russia’s oil and gas exports has declined over the past two months, as has oil and gas tax revenue, which fell 36% in May.
Russia’s estimated earnings from exports of crude oil and petroleum products fell by $1.4 billion to $13.3 billion in May, down 36% from a year earlier, reflecting lower average prices for Russian crude oil The International Energy Agency (IEA) said in its June Oil and Market report last month.
For the past two days, Russian crude prices have risen after Moscow announced on Monday it would cut its oil exports by 500,000 barrels per day (bpd) in August.
The price of Russian ESPO crude destined for China climbed to a seven-month high as Chinese buyers rushed to buy it ahead of an announced export cut next month.
According to Portal, ESPO is currently trading at a $4/barrel discount to Brent, compared to $6/barrel before the announcement of Russia’s export cut.
The Russian announcement came just minutes after Saudi Arabia said it would extend its unilateral August oil production cut by 1 million bpd. Russia has already reduced production, but prices are falling as the crisis in the West and China’s underwhelming growth limit consumption. Moscow is suffering more from general market conditions than from Western sanctions.
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