Russia: oil and gas revenues collapse in June
Oil and gas revenues for Russia's budget plummeted to $5.8 billion (528.6 billion Russian rubles) in June, down 26.4 percent from the same month a year earlier, according to data provided Wednesday by Russia's Finance Ministry .
Compared with May 2023, Russia's oil and gas budget revenues also fell in June by 7.4 percent from $6.3 billion (570.7 billion rubles) the previous month.
Earlier this week, the ministry said the average price of Russia's flagship Urals crude averaged $52.17 a barrel between January and June 2023, compared with an average Urals price of $84.09 a barrel for the same period in 2022. In June alone, the average Ural price was $55.28 a barrel, lower than the average price of $87.25 a barrel in June 2022.
Revenues from Russia's oil and gas exports have declined over the past two months, as have oil and gas tax collections, which fell 36% in May.
Russia's estimated revenue for exports of crude oil and petroleum products fell $1.4 billion to $13.3 billion in May, a 36% decline from a year earlier, due to lower average prices of Russian crude, the International Energy Agency (IEA) said in its June Oil Market Report last month.
Over the past two days, Russian crude prices have rallied after Moscow said on Monday it would cut its oil exports by 500,000 barrels per day (bpd) in August.
The price of Russian ESPO crude oil destined for China climbed to a seven-month high as Chinese buyers rushed to buy it ahead of an announced export cut next month.
According to Reuters, ESPO is currently trading at a discount of $4 a barrel to Brent, compared to $6 a barrel prior to the announcement of the Russian export cut.
The Russian announcement came minutes after Saudi Arabia said it would extend its unilateral oil production cut by 1 million bpd in August. Russia has already reduced its production, but prices are falling because the crisis in the West and the non-overwhelming growth of China are limiting consumption. Moscow is being hurt more by general market conditions than by Western sanctions.
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The article Russia: oil and gas revenues collapse in June comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/russia-a-giugno-crollo-delle-entrate-per-gas-e-petrolio/ on Wed, 05 Jul 2023 12:40:50 +0000.