Oil has been cleared of drawdowns

Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the Kommersant newspaper on the dynamics of oil production in Russia.

Production dynamics in 2022 are influenced by two factors — the effect of the low base in 2021, the refusal of companies from the EU and Japan from Russian oil and potential sanctions, Sergey Kondratiev said. He recalls that in the first eight months of 2022, oil production declined year-on-year only in April and May, returning to growth since June (plus 1.8% year-on-year in August). The increase in production in recent months is associated with continued high demand in Asia, an increase in shipments in the Mediterranean and an increase in processing at Russian refineries, the expert believes. The dynamics of production in the coming months will depend on how the EU sanctions on the supply of Russian oil will work from December. According to Kondratiev, in 2022, oil production in Russia will be 520-522 million tons, having slightly decreased by 2021 (524.6 million tons).