Russian oil exports to India and China are declining - Bloomberg

19 July 2022, 21:12 | Economy
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Russia began to lose its share in the oil markets of India and China. Bloomberg has recorded that tanker traffic, which supplies oil to two of Russia's largest markets, has fallen by almost 30% in recent weeks from peak levels in the spring..

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The agency notes that it is premature to draw far-reaching conclusions based on these data, however, the trend towards a reduction in the consumption of Russian oil by the Asian market looms quite clearly.. Bloomberg believes that Asia will not be able to fully replace Western markets for Russia, but this is enough for now to make big profits amid record oil prices..

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According to the agency, Russia now receives about $160 million in budget revenues weekly, which is almost 25% higher than before the start of the war.. However, the current revenue figure has already fallen by 25% of the spring peak, when oil exports from Russia to Asia peaked.. The agency estimates the current volume of tanker oil supplies from Russia at 3.24 million barrels per day, since mid-June this figure has decreased by 467 thousand barrels per day, or 13%..

The average volume of deliveries of Russian oil to China over the past four weeks amounted to 784 thousand. barrels per day, to India - 679 thousand. These figures may rise once tankers of some 350,000. barrels of oil will reveal their final destination.

At present, the share of India and China in Russian oil exports fluctuates around 55-56% against 63% in April. The publication notes that even taking into account tankers that have not yet disclosed their destination, the volume of Russian oil supplies to Asia fell to a minimum in almost four months..

As you know, against the background of Western countries' refusal of Russian energy resources, the Asian market has become the main buyer of Russian oil and is a vital source of income for the country's budget.. The reduction in revenues is fraught with serious problems for the Russian authorities, since the dependence of the budget on oil and gas revenues has jumped to 40% since the beginning of the war in Ukraine.

Russia is forced to compete in Asian markets with its political allies - Iran and Venezuela, which have reduced their shares in China and India because of Russia..

Recall that the G7 countries are now working on a mechanism for introducing marginal oil prices.. With the help of pressure on the insurance market, countries plan to ban tanker transportation of Russian oil at prices above $40-60 per barrel. G7 representatives are negotiating with the largest buyers of Russian oil in China and India to join this mechanism.




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