IEA: Russia Earned $20 Billion From Oil Exports in May

Russia earned about 20 billion dollars from the export of crude oil and petroleum products in May. That is an increase of 11 percent compared to April, according to calculations by the International Energy Agency (IEA).

Russia is benefiting from the high oil prices.

The IEA states that the total income of Russian oil exports is therefore again about the same as before the invasion of Ukraine. Because of the war, Western customers buy much less oil from Russia, but this is partly compensated by larger purchases by, for example, China and India. Those countries demand significant discounts from Russia.

The IEA further announced that global oil demand is expected to be higher next year than before the outbreak of the corona crisis, with the average daily demand of 101.6 million barrels (of 159 litres). That is because demand from China will increase strongly again due to the recovery after the corona lockdowns in the country.

The IEA thinks supply in the oil market could struggle to meet demand next year as Russian production falls due to sanctions.