Russia’s Oil Revenue Falls Sharply In February As Sanctions Bite: IEA

The International Energy Agency (IEA) reported that in February, Russia’s oil export earnings reached their lowest level in more than a year as buyers of the country’s barrels mostly complied with price caps and sanctions.

According to the IEA, the flow of money into the country from international oil sales fell to $11.6 billion last month, down more than 40% from the previous year. According to the agency, crude oil and product exports averaged 7.5 million barrels per day in February, the lowest level since September.

“Although it has been relatively successful in maintaining volumes, Russia’s oil revenue has suffered,” the IEA said in its monthly report on Wednesday.

In order to restrict the ability of the Kremlin to fund its conflict in Ukraine, Western nations and their allies have taken a number of measures to reduce Russia’s oil proceeds, a significant source of revenue for the national budget.

According to the IEA, initial market signals indicate that Russian crude oil and petroleum products were sold at prices well below the price caps last month.

The IEA calculated the weighted average export price of Russian crude at $52.48 per barrel, compared to a cap of $60, using data from Argus Media Group and Kpler.

According to the data, Russian diesel and gasoline, as well as lower-value products such as naphtha and fuel oil, traded on average below their respective caps of $100 and $45 per barrel.

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