Russia Weekly Oil Exports Drop 26% as Buyers Look Elsewhere By Bloomberg

(Bloomberg) — Russia’s exports from March 17 to 23 were down by more than a quarter from the prior week, according to industry data.

While the data didn’t include reasons for the drop, it occurred as Russia faced a growing movement by many of its usual customers to find alternate energy supplies after President Vladimir Putin’s invasion of Ukraine. 

Russia’s average daily exports over the period reached 495.3 thousand tons, down 26.4% from the week before, according the industry data seen by Bloomberg. That’s equivalent to average daily shipments of about 3.63 million barrels, Bloomberg calculations show. 

Russia’s total production over the period was little changed, dropping 0.3% from the week before, the data show. The nation pumped over 11.08 million barrels per day on average from March 17 to 23, according to Bloomberg calculations.

Only a handful of nations — including the U.S. and the U.K. — have imposed explicit embargoes on imports of Russian oil. Yet many of the country’s traditional customers have undertaken a self-imposed buyers strike in response to the invasion of Ukraine. Major companies from Shell Plc (LON:) to TotalEnergies SE (PA:) have said they intend to phase out purchases of crude and fuel from Russia.

Russia is still able to sell its crude due to price discounts and aims to keep output steady even amid unprecedented economic sanctions, Deputy Prime Minister Alexander Novak said last week. 

The country plans to raise shipments of its flagship Urals blend in April, with state pipeline company Transneft PJSC issuing an export program to load 2.26 million barrels a day onto tankers from three western ports next month. That would be the highest since June 2019 and also a big jump from this month.

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