Russian seaborne crude exports crater to their lowest level in 5 months as Europeans shun Moscow ahead of new sanctions

• Russian seaborne crude exports have hit their lowest in five months, Bloomberg data shows.
• Across a four-week moving average, Russia's seaborne shipments cratered below 3 million barrels a day.

Russia's seaborne crude exports have seen a steep drop-off over the last month, with cargoes to Europe falling 18%, according to Bloomberg data.

A storm in the Pacific and a decline in shipments coming out of the Baltic region dragged on exports. Bloomberg data shows that in the week leading up to September 16, crude shipped from Russian ports averaged 2.54 million barrels a day, down from 3.42 million barrels in the week to September 2.

Across a four-week moving average, Russia's seaborne shipments cratered below 3 million barrels a day for the first time in five months.

To Europe specifically, shipments fell by 172,000 barrels a day in the month up to September 16, per Bloomberg, as the European markets increasingly close off to Russia ahead of fresh December sanctions.

Meanwhile, Russian crude cargoes in Asia did not surge in the same time period, meaning there was nothing to offset the drop in exports elsewhere.

The decline in exports could could impede the Kremlin's ability to fund its war in Ukraine amid lower volumes and a 15% drop in export duty rates due to hit in October.

Still, Russian energy overall has seen high demand in Asia. China spent a record-breaking $8.3 billion on Russian energy imports in August, customs data showed. Chinese buyers accrued huge amounts of cheap oil, gas, and coal last month, and have spent $44 billion on Russian energy in total since February.

Russian Urals oil is currently trading at about $72 a barrel, which China has taken advantage of. Brent and West Texas Intermediate crude, comparatively, are both priced at above $80 currently.