Russian oil exports plummet in August as Ukraine war escalates
Russian crude oil exports dropped sharply in August 2024, mainly because Ukrainian drone attacks damaged key pipelines and refineries, and the US doubled tariffs on Indian imports.
These moves have shaken up the flow of Russian oil to big buyers like India and pipeline-dependent European countries such as Hungary and Slovakia.
Ukraine's drone attacks halt crude flows to Hungary, Slovakia
Ukraine's drone attacks stopped crude flows to Hungary and Slovakia by hitting the Druzhba pipeline's Unecha station.
Strikes on Russia's Volgograd and Novoshakhtinsk refineries cut refinery output by about 700,000 barrels per day.
As a result, shipments from Russia's Baltic port Ust-Luga fell to their lowest in four weeks by August 24.
US doubles tariffs on Indian imports
The US ramped up tariffs on Indian goods in response to India buying Russian oil.
This led to a 17% drop—over half a million barrels per day—in Russia's crude shipments to India since June.
Even with discounts from Russia, Indian refiners are planning small cuts in what they buy.
Russia's weekly export value falls 9%
With fewer barrels shipped out and prices slipping a bit, Russia's weekly export value fell 9%, down to $1.11 billion for the week ending August 24.
The combined impact of war disruptions and trade pressure is clearly hitting Russia where it hurts: its wallet.