Oil demand in Russia stabilizes after initial war shock

Russian oil production is expected to exceed 480 million tons this year, in line with the 500,000 barrels per day reduction decided by Russia. Russia's decision to cut production could have a significant impact on the global oil market.

Partagez:

Russia ‘s oil production is expected to exceed 480 million tons this year, or about 9.6 million barrels per day (bpd), according to a knowledgeable Russian government source.

Russia’s combined oil and gas condensate production exceeds OPEC quotas+.

The figure is in line with Russia’s commitment to cut production by 500,000 bpd to 9.5 million bpd from March until the end of the year. The source said that if the current trend continues, production for the entire year will reach 480 million tons. The Russian Ministry of Energy has not yet commented on this issue.

In 2022, Russia’s combined oil and gas condensate production reached 535 million tons, or 10.7 million bpd, with condensate excluded from the production quotas used by the OPEC+ producer group for Russia.

However, this year’s production could reach about 520 million tons or 10.4 million bpd, taking into account 40 million tons of condensate gas, the source said. Official forecasts had projected Russia’s oil and gas condensate production for 2023 to be between 490 and 500 million tons (9.8 to 10 million bpd).

Russia’s decision to cut production could have a significant impact on the global oil market

Oil demand in Russia has stabilized after suffering an initial shock at the start of the war, according to analysts at J.P. Morgan. They also estimated that Russia’s overall production, including crude and condensate, was 10.8 million bpd in March, down 250,000 bpd from February.

Russia’s oil production declined in April 2022 after the West imposed sanctions due to the country’s military operation in Ukraine. Despite this setback, Russia has managed to successfully sell its oil to China and India. Nevertheless, Moscow has decided to cut crude oil production by 500,000 bpd until the end of the year to support the price of oil, which is the main source of income for the Russian economy.

The lack of transparent official data from one of the world’s largest oil producers makes it more difficult to monitor global supply and analyze markets, according to analysts at J.P. Morgan in a research note. Russia’s decision to cut production could have a significant impact on the global oil market, and it remains to be seen how this will affect prices and supply in the coming months.

Dalinar Energy, a subsidiary of Gold Reserve, receives official recommendation from a US court to acquire PDV Holdings, the parent company of refiner Citgo Petroleum, with a $7.38bn bid, despite a higher competing offer from Vitol.
Oil companies may reduce their exploration and production budgets in 2025, driven by geopolitical tensions and financial caution, according to a new report by U.S. banking group JP Morgan.
Commercial oil inventories in the United States rose unexpectedly last week, mainly driven by a sharp decline in exports and a significant increase in imports, according to the US Energy Information Administration.
TotalEnergies acquires a 25% stake in Block 53 offshore Suriname, joining APA and Petronas after an agreement with Moeve, thereby consolidating its expansion strategy in the region.
Orlen announces the definitive halt of its Russian oil purchases for the Czech Republic, marking the end of deliveries by Rosneft following the contract expiry, amid evolving logistics and diversification of regional supply sources.
Equinor and Shell launch Adura, a new joint venture consolidating their main offshore assets in the United Kingdom, aiming to secure energy supply with an expected production of over 140,000 barrels of oil equivalent per day.
Equinor announces a new oil discovery estimated at between 9 and 15 mn barrels at the Johan Castberg field in the Barents Sea, strengthening the reserve potential in Norway's northern region.
Sierra Leone relaunches an ambitious offshore exploration campaign, using a 3D seismic survey to evaluate up to 60 potential oil blocks before opening a new licensing round as early as next October.
Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
Shell group publicly clarifies it is neither considering discussions nor approaches for a potential takeover of its British rival BP, putting an end to recent media speculation about a possible merger between the two oil giants.
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.