Russian oil exports have returned to pre-war levels

London (CNN) Russia oil exports It’s back to levels last seen before it invaded Ukraine, despite a barrage of Western sanctions.

Moscow’s exports of crude oil and petroleum products rose in March to their highest level since April 2020, jumping by 600,000 barrels per day, the International Energy Agency (IEA) said in its monthly oil report on Friday. The rise raised Russia’s estimated revenues from oil exports to $12.7 billion last month.

Revenue remains down 43 percent from last year, the International Energy Agency said, as Russia is forced to sell its barrels to a limited group of customers who can negotiate deeper cuts.

Western countries have imposed a slew of sanctions on Moscow’s energy exports since President Vladimir Putin ordered his forces into Ukraine in February last year. The most important is a ban on Russian Seaborne crude oil imports In the European Union and a Ban on refined petroleum products Like diesel in the block.

But Russia, the world’s second largest exporter of crude, has found willing buyers in it China and India To replace European customers.

Nevertheless, the sanctions have wrought a huge dent in Russia’s coffers. The government said last week that falling energy revenues contributed to a budget deficit of 2.4 trillion rubles ($29 billion) in the first three months of this year. Its total income decreased by approximately 21% compared to the same period in 2022, Reuters reported.

Russia relies on the oil and gas sector to finance about 45% of its budget, according to the International Energy Agency.

supply pressure

The International Energy Agency also said a surprise Reductions in crude oil production The Organization of the Petroleum Exporting Countries (OPEC) announced this month and its allies, a group known as OPEC+, that they risk “exacerbating” oil shortages expected in the second half of 2023.

The International Energy Agency said the OPEC+ cuts are likely to cut global oil supplies by 400,000 barrels per day by the end of this year. Meanwhile, demand is expected to rise by 2 million bpd to a record high of nearly 102 million bpd this year.

An expected oil shortage could weigh on already struggling economies slowed growth Historically high inflation.

OPEC+ unexpectedly announced on April 2 that it would do so Reducing crude oil production 1.66 million barrels per day. The cuts will begin in May and continue through the end of the year, according to an official at the Saudi Energy Ministry.

This comes on top of the cartel’s 2 million barrels per day cut announced in October.

The IEA said the cuts risk “boosting oil prices at a time of heightened economic uncertainty” despite slowing industrial activity in the world’s largest economies and rising oil production in countries outside OPEC+.

Brent crude, the global benchmark, was last trading at $87 a barrel, up about 8.6% since OPEC+ announced its latest round of production cuts.