The impact of Saudi Arabia’s cuts is starting to show as Putin’s exports of oil decline

As part of a commitment to reduce production, Russian oil exports have seen a significant decline. In the past week, oil flows from Russian ports fell by 1.24 million barrels per day – the largest weekly decrease since December when two ports were affected by storms.

This brought exports below 3 million barrels per day for the first time in eight weeks, indicating that Russia is delivering on its pledge to reduce production.

In February, the Kremlin announced that it would decrease output by 500,000 barrels per day until June, in response to the Western countries’ imposition of a price cap on Russian oil.

Russia’s deputy prime minister, Alexander Novak, later revealed that the cut would be extended until the end of the year in coordination with other OPEC+ producers, including Saudi Arabia.

According to Bloomberg, the Russian energy ministry stated on Friday that production had been reduced by 700,000 barrels per day in March, indicating that the decline in exports may continue.

Despite attempting to fill its war chest through record-high seaborne deliveries of crude oil following the attempted invasion of Ukraine, inflows to the Kremlin’s war chest from oil export duties dropped by $17 million to a five-week low of $39 million in the week-ending April 7, while the four-week average income saw a slight decrease to $45 million.

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