In April, Russia’s oil export revenue dropped to $13.2 billion, the lowest since June 2023, due to falling global crude prices and weak demand, the International Energy Agency reported. Russian crude prices fell to $55.6 per barrel, below the G7 price cap, reflecting broader international market trends and economic uncertainties impacting oil demand.Brent crude prices have dropped over 14% this year due to US tariff concerns and weak demand in China.
Increased oil supply from Iran and OPEC’s recent production boost could lead to oversupply later in the year. Russia’s budget is highly exposed to oil price drops, with oil and gas making up about 30% of its revenue. The country’s budget deficit grew in April, highlighting financial strain amid high war-related spending.In April, Russia’s oil exports averaged 7.55 million barrels per day, slightly higher than previous months, with ESPO crude reaching a record over 1 million barrels daily.
Despite reduced purchases by Chinese refiners, discounts attracted alternative buyers. Russia’s crude production rose to 9.3 million barrels per day, supported by increased exports and a recovery in refinery activity following a temporary ceasefire from Ukrainian drone attacks.
