- Oil prices have gained over 10% so far this year following output cuts from Saudi Arabia and Russia.
- The gains could boost Russia's oil revenues. Russia is subject to a $60-a-barrel price cap.
Oil prices are nearing $100 a barrel, throwing a spanner into the US Federal Reserve's $4 — but at least one party would be rejoicing: Russia.
Oil prices have gained recently on the back of supply cuts from major energy producers $4
The production cuts have sent oil prices up over 10% so far this year and are likely benefiting Russia and its war chest, according to a $4 of shipping and insurance records, the outlet reported on Sunday.
The FT's analysis showed that almost three-quarters of all seaborne Russian crude oil exported out of the country managed to get shipped without Western insurance in August. That's up from about 50% in the Spring, the FT reported, citing data from data firm Kpler and insurance companies.
Russia's side-stepping the use of $4 for its oil exports is an important development because it's one of the key tools used to enforce a G7-led $60-a-barrel price cap on Russian oil. The price cap is part of sweeping sanctions against Russia over its invasion of Ukraine.
Russia's ability to ship so much crude without Western insurance suggests it may now be able to sell crude over the price cap, per the FT analysis.
And higher oil prices have boosted Russia's energy export revenues. The Kremlin raised $4 in August — up from $15.3 billion in July, data from the $4 showed.
In fact, Russia could have made over one billion dollars just by $4 — even though it was still selling crude to India below the $60-a-barrel price cap, according to a separate $4
Despite sweeping sanctions, $4 is getting a boost from defense and government spending, the $4 reported in July.
Higher oil prices are bad news for the world's central banks, which have been trying to tame $4 since last year. $4 for economic activities, so higher oil prices generally lead to inflation.
US West Texas Intermediate and Brent crude oil futures were up 0.1% at $90.13 a barrel and $93.38 a barrel, respectively, at 11.34 p.m. ET on Sunday.
Russia's energy ministry and Kpler did not immediately respond to requests from Insider for comment sent outside regular business hours.