The price of Russian crude has gone past the west’s price cap of $60 a barrel, set by the Group of Seven nations, and Russian revenue from oil exports has risen to an eight-month high, according to the International Energy Agency, which declared IEA said that the newly priced Russian crude was off-limits to EU shipping Russian oil was sold above the G7 price cap throughout July according to a new report from the IEA.
A production cut in Saudi Arabia helped global crude prices to move higher in July and into August. That raised Russia’s seaborne crude shipments to a weighted average of more than $64 a barrel.
In its monthly oil market report the IEA said that “tightening physical balances in the wake of Saudi output cuts and lower Russian loadings added additional momentum to the price rebound, pushing crude forward curves deeper into backwardation”.
Higher crude prices, combined with narrowing discounts for Russian grades, boosted Russia’s export revenues up by $2.5bn to $15.3bn in the month.
Source: Insurance Marine News 14th August 2023