BAKU, Azerbaijan, October 13. In September, Russian oil export revenues experienced a significant increase of $1.8 billion month-on-month, reaching $18.8 billion - their highest point since July 2022.
According to the data received by Trend from the International Energy Agency (IEA), this growth was driven by both a rise in overall export volumes, with a monthly increase of 460,000 b/d, and an increase in the weighted average prices of Russian crude, up by $8 per barrel month-on-month.
The primary contributor to this revenue surge was crude oil, with a monthly increase of $1.5 billion, resulting in a $2.6 billion surplus compared to the unusually low levels seen in September 2022, the agency noted.
Notably, Russian crude prices outpaced the North Sea Dated benchmark in September, leading to a reduction in discounts for Urals crude to their lowest monthly average level since March 2022, the IEA said. However, the steeper backwardation in Dated versus Dubai M1 caused ESPO crude discounts to the Middle East benchmark to narrow by $1.50 per barrel, reaching -$6.90 per barrel in September, and around -$4 per barrel in the first five days of October.
At this level, the discounts for Russian crude compared to other East of Suez grades may not be sufficient to incentivize some buyers. It's worth mentioning that all Russian crudes were trading at prices exceeding $80 per barrel, well above the G7 price cap, the agency added.