Russian oil exports, excluding those to former Soviet states, rose to an average of 4.88 million barrels per day (bpd) in the first four weeks of April, up more than 2% from March, a source familiar with the data told Reuters.

The increase in exports is an indicator of the resilience of Russia’s commodity exports, a key source of its fiscal revenue, in the face of sweeping Western sanctions over what Moscow calls its “special military operation” in Ukraine.

However, traders have warned of new challenges ahead for Russian oil exports as major global trading houses plan to reduce purchases from state-controlled Russian oil companies as early as May 15 to avoid d violate European Union sanctions against Russia.

Businesses adapted to new market conditions in April, traders said, and several loading stations that were initially canceled were added to the plan or replaced by other producers.

The majority of Russian oil shipments loaded in April headed for Asia, mainly India and China, although some are shipped to Turkey and European states under remaining forward deals.

The United States has already banned imports of Russian oil, while the chief executive of the European Union on Wednesday proposed a gradual oil embargo on Russia.

The source also said Russian oil and gas condensate production for the period fell nearly 9% to 10.05 million bpd, according to a report last week from an Interfax news agency.

The Interfax news agency, also citing a source familiar with the data, said Russia’s production of oil and gas condensates fell in April by nearly 4% year-on-year to 41.12 million tonnes, or around 10.05 million bpd for the whole month.

He also said oil and gas condensate production from May 1-3 increased slightly by 2% from April to 1.402 million tonnes per day (10.28 million bpd).
Source: Reuters (edited by Louise Heavens)