Russian Oil Exports Plunge Under Tightening US Sanctions

Russia’s oil exports dropped sharply in November. New data from the International Energy Agency shows a significant decline. The fall is linked directly to buyer concerns over stricter US sanctions.

This cautious shift has created a major revenue problem for Moscow. Lower exports and falling prices have cut deeply into its war chest. The financial impact is now being felt on a global scale.

Revenue Hits Lowest Point Since War Began

Russian oil exports fell by 420,000 barrels per day last month. This information comes from a detailed IEA report. Total exports dropped to 6.9 million barrels per day.

The consequence was a severe drop in income. Russia’s oil revenue fell to $11 billion in November. That figure is $3.6 billion lower than the same period last year.

Export revenues have now hit their lowest level since the invasion of Ukraine began in February 2022. The price for Russia’s key Urals crude blend fell sharply. It dropped by over $8 to just $43.52 per barrel.

Global Market Shifts as Supply Falls

The decline in Russian supply contributed to a wider global drop. Overall world oil supply fell by 610,000 barrels per day in November. This extends a cumulative decline that began in September.

OPEC members accounted for most of this global supply reduction. Unplanned outages in several member states added to the shortfall. Sanctions on Venezuela also played a contributing role.

Despite these pressures, the IEA forecasts future growth. Global oil supply is expected to increase by 3 million barrels per day in 2025. Demand is also projected to rise steadily in the coming years.

The steep decline in Russian oil exports underscores the growing effectiveness of international sanctions. Market forces and geopolitical pressure are reshaping global energy flows. This trend signals continued financial strain on the Kremlin’s resources.

A quick knowledge drop for you

Why did Russian oil exports fall in November?

Exports fell due to increased buyer caution. Companies are worried about risks from stricter US sanctions. This led them to seek oil from other sources.

How much did Russia’s oil revenue decrease?

Revenue dropped to $11 billion for the month. This is $3.6 billion less than the previous year. It is the lowest revenue point since the war started.

What happened to global oil supply?

World supply fell by 610,000 barrels per day. OPEC production cuts were a major factor. Supply disruptions in several countries added to the decline.

What is the forecast for future oil supply?

The IEA expects global supply to grow by 3 million barrels per day in 2025. Demand is also forecast to rise. Improved economic conditions are seen as the driver.

How are US sanctions affecting this situation?

The US has warned countries buying Russian oil. It says they could face additional tariffs. This threat is making international buyers very cautious.

Trusted Sources

International Energy Agency (IEA) Oil Market Report.