The Russian oil production may drop sharply

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Business FM radio station regarding expectations of a sharp decline in exports of Russian oil and petroleum products in the coming months.

“The country does not have sufficient capacity to store the already produced oil. In this regard, we should expect a slowdown in the development of Russian oil production, and the scale of this slowdown will be determined by the real state of affairs in the world oil market. In general, we share the International Energy Agency's fears that Russian oil exports will decline in the coming months, but we are not as pessimistic as the IEA is in assessing the likelihood of a decline in Russian oil exports. According to our estimates, from 1.5 million to 2 million barrels per day of Russian oil may temporarily leave the market.”