Photo: Getty Images
Marine exports of Russian crude oil are trending against the Kremlin, raising the prospect of sharp production cuts in the coming months, Reuters reports.
Russian oil producers may soon be forced to significantly curb output as mounting pressure from U.S. President Donald Trump and European governments further constrains the country’s export capacity. With overseas shipments slowing, domestic storage facilities are nearing capacity — a development that could deliver another blow to Moscow’s military budget.
According to analytics firm Kpler, Russia’s seaborne crude exports fell to 3.4 million barrels per day in January, down from 3.8 million bpd in December, and have declined further to around 2.8 million bpd so far in February.
At the same time, volumes of Russian oil stored aboard tankers have surged to record highs of more than 150 million barrels in recent months. Many vessels have also reduced speed, both indicators pointing to weakening demand from buyers.
A proposal by the European Commission to impose a comprehensive ban on any business supporting the maritime export of Russian crude could tighten the squeeze further.
Earlier reports indicated that Russian oil exports to China have risen for a third consecutive month and are set to reach a new record in February. The increase is attributed to China’s independent refiners snapping up heavily discounted cargoes after India sharply reduced its purchases.
