Saudi Arabia Buys Record Amounts of Cheap Russian Oil
An analysis of trading data showed Thursday that Saudi Arabia imported record amounts of cheap Russian oil in June, despite international sanctions on Moscow in retaliation for its 2022 invasion of Ukraine.
The analysis shows that Saudi purchases of Russian petroleum had jumped tenfold as the desert kingdom gathered energy supplies for the summertime when high temperatures typically. lead to increased electricity usage.
Western countries are desperately trying to curb international purchases of Russian energy to starve Moscow of revenue for its Ukraine war. Among other measures, G7 countries have tried to cap the international price of Russian oil at $60 a barrel.
Despite US requests to boost petroleum exports, Saudi Arabia has cut production to keep prices high. Brent crude was priced at just over $80 a barrel Thursday, while WTI crude was over $76.
Unlike Russia, Saudi Arabia can quickly sell its oil at international market prices. Riyadh is profiting by cutting production to boost prices and buying cheaper Russian oil to meet its needs.
In June, Russian tax revenues from oil and gas sales reportedly dropped by 26% compared to the previous year.
