Russia exports more oil even as it tries to help OPEC cut global supplies – Quartz

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Russia exports more oil even as it tries to help OPEC cut global supplies – Quartz

An oil tanker in Nakhodka, Russia

An oil tanker in Nakhodka, Russia
Photo: Tatiana Meel (Reuters)

OPEC and its economic allies in the OPEC+ bloc have attempted to reduce global oil supplies in order to raise the prices lowered by record US production. Russia, for its part, pledged earlier this year to reduce its crude oil exports as part of this mission. But it has actually increased its exports.

Bloomberg Reports that Russian oil shipments reached nearly 4 million barrels per day this week. This would be the highest level since May last year. Russia broadcast last month that it would soon reduce exports by 121,000 barrels per day from last May and June levels, but so far this year exports are actually higher than that.

The invasion of Ukraine had a considerable effect on the Russian economy, both in terms of inputs And outputs. On the one hand, military spending has been so large that the International Monetary Fund suggests it is actually boost gross domestic product of Russia. On the other hand, economic sanctions have made life much more difficult for non-military consumers and businesses.

Never mind the economic stability that Russia manages to maintain depends heavily on its ability to generate oil revenues. This is partly why energy infrastructure has been such a big target for Ukrainian drone and missile strikes; If oil is the reason Russia can continue to attack you, then you attack Russian oil.

Now that the European Union, once a major customer of Russian crude, has either I stopped buying these things west I buy it much cheaper than Russia would like, China and India intensified their purchases. Bloomberg reports that upcoming exports are also at their highest levels since last spring.

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