The article states that due to the aggravation in the Middle East, more than 12 million barrels of oil exports are blocked every day in the Persian Gulf. This, in turn, contributed to the reduction of Russian oil reserves, which, due to sanctions, are stored on tankers at sea.
Russia's four-week average gross oil export revenue rose to $2.02 billion a week in the 28 days to April 5, up from $1.79 billion in the period to March 29, the highest since June 2022, according to Bloomberg.
The agency notes that Urals oil prices rose for the fifth week in a row. This happened against the background of a general increase in world prices, which allowed Russia to reduce the discounts that previously had to be provided to supply additional volumes, in particular to China.
According to Argus Media estimates cited by Bloomberg, export prices for Urals from the Baltic region increased by about $12.50 to $85.73 per barrel. Black Sea shipments rose in price to $84.07 per barrel. Pacific ESPO crude rose $7.90 to average $92.11 a barrel. Supplies to India also rose in price by $16.10 to $113.76 per barrel.
At the same time, Bloomberg writes that the Kremlin cannot take full advantage of high prices due to the consequences of Ukrainian drone attacks on export infrastructure on the coast of the Baltic and Black Seas. In addition, the two-week truce in the US-Israel-Iran war announced on Tuesday, April 7, has led to a drop in oil prices, which could potentially reduce Russian revenues if it continues and supplies through the Strait of Hormuz resume.
Ukrainian President Vladimir Zelensky said in an evening address that even the announcement of a ceasefire in the Middle East is already affecting the markets, in particular by contributing to lower oil prices.
He stressed that there are no grounds yet for easing the sanctions pressure on Russia, despite arguments about the alleged need to ease restrictions due to the situation on the global oil market.
“If it is possible to unblock the Strait of Hormuz – and this is a global necessity – Russian oil revenues should continue to decline. Oil fuels the Russian war and makes Russia self-confident. And that is why the Russians invested so much in supporting the Iranian regime,” the president emphasized.
