Oil production in russian federation will decrease by 1.4 million barrels due to sanctions
16.11.2022 - 12:40
EU sanctions against russian oil and oil products will lead to a significant reduction in production in russia.
Sanctions on oil and oil products from russian federation will enter into force on December 5 and February 5, respectively.
In particular, the new restrictions will reduce russian oil production by 1.4 million barrels per day.
“The approach of the EU embargo on the import of russian oil and oil products, as well as the ban on maritime services, will add additional pressure to the world’s oil balances, and, in particular, to the already extremely limited diesel fuel markets,” the International Energy Agency noted.
The IEA added that the proposed cap on the price of oil could help reduce tensions in the oil market. However, many uncertainties and logistical challenges remain.
The G7’s plan to cap the price of russian oil, intended as an add-on to the EU embargo, will allow transport service providers to help export Rosneft, but only at forced low prices.
