Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the Kommersant newspaper on the prospects for oil production in Russia in 2023.
According to Kommersant, the Russian oil industry increased production by 2% by the end of 2022, to almost 535 million tons. Among the largest oil companies, production from Surgutneftegaz grew faster, which by the end of last year became the third in terms of production, overtaking Gazprom Neft. Of the four largest oil producers, only Rosneft reduced production. However, experts expect a reduction in the production of raw materials in January—February due to the application of the EU and the US price ceiling for oil and petroleum products.
According to his estimates, in February, the demand for oil from Russian refineries may decrease by 2.8–3.2 million tons compared to January, and production — by 2.5–3 million tons.
"Russia may indeed face a fairly strong decline in oil demand from oil refining in February, since the EU market is still a key direction for Russian exports of petroleum products, and redirecting the flow of petroleum products to new markets may be more difficult and take longer compared to the oil market," Sergey Kondratiev believes.
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