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Reuters: Russia to cut seaborn oil exports in January 2024

Reuters: Russia to cut seaborn oil exports in January 2024 Illustrative photo (Getty Images)

Russia is planning to cut its oil exports from its seaports in January by 100,000 to 200,000 barrels per day compared to the December level, reports Reuters.

"The export schedule for the first quarter of 2024 is lower than for October-December," said one source.

The quarterly export schedule serves as a three-month export plan for Russian oil companies, allowing them to plan supplies via pipeline monopoly Transneft.

Victor Katona, a senior oil market analyst at consulting firm Kpler, estimated the average oil exports from Russia by sea in December at 3.5 million barrels per day, with an expected decline in January due to increased processing.

Reuters indicates that a reduction in oil shipments is expected primarily in the western ports of Russia - Primorsk, Ust-Luga, and Novorossiysk.

Sanctions on Russian oil

The effectiveness of sanctions has diminished due to inadequate monitoring and adherence to the policy of limiting oil prices, allowing Russia to sell its oil at prices higher than the established restriction level, note the authors.

In addition, a "loophole in oil refining" legally allows petroleum products made from Russian crude oil to reach countries in other regions of the world. This is particularly relevant to India, which significantly increased its oil imports from Russia.

Recently, it was reported that the U.S. government intends to halve Russia's revenues from oil and gas exports by 2030.

Bloomberg reported that almost five million barrels of Russian Sokol crude oil are stranded en route to Indian refineries after new U.S. sanctions.