Russia oil and gas revenue more than doubles in October to $11.9 billion amid Iran war disruption

Amid disrupted energy supplies in the Middle East and higher world prices linked to the Iran war, Russia's revenue from the oil and natural gas sector more than doubled in October compared with the previous month.

According to figures published by Russia's finance ministry, Moscow's total revenue from the sector in October was 971.2 billion roubles, equivalent to about 11.9 billion US dollars.

Ministry statistics show revenue rose by about 114.7 percent in October compared with September. Revenue from the energy sector was an estimated 5.54 billion dollars in September and about 5.2 billion dollars in August.

Disruption to supplies through the Strait of Hormuz, the main shipping route for crude oil and liquefied natural gas, amid the Middle East crisis created instability on international markets. Brent crude rose to about 115 dollars a barrel in October as a result.

At the same time, Dutch TTF natural gas, the European benchmark, traded late in the month at 103 euros per megawatt-hour, about 115.7 dollars.

The Russian finance ministry said about 13.76 billion dollars was collected in October as mineral extraction tax and a further 4.39 billion dollars as additional income tax. After subsidies to domestic oil suppliers and other adjustments, net energy revenue stood at about 11.9 billion dollars.

Compensation paid from the state treasury to oil refining companies to keep domestic fuel prices stable also rose. The support was 3.74 billion dollars in September and rose to about 5.08 billion dollars in October. The support is paid to keep local supplies normal when export prices rise above domestic prices.

Despite the monthly jump, total annual revenue still shows a shortfall. In the first ten months of this year, from January to October, Russia's total oil and gas revenue stood at about 78.91 billion dollars, 14.07 percent less than in the same period last year.