Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to RIA Novosti and the Prime news agency on the likely consequences of the Ukrainian settlement and the lifting of anti-Russian sanctions by the United States and the EU for the Russian oil industry.
Alexey Belogoryev believes that the oversupply in the global oil market, which OPEC+ is trying to contain, will not allow Russia to increase production in 2025, even if sanctions are eased. In addition, according to him, there are also technical restrictions on a sharp increase in oil production.
If US sanctions are eased, this will lower freight prices and help reduce discounts on Russian grades of oil, primarily the Urals brand, the expert noted.
"But much will depend on whether the EU lifts its embargo and, if so, how soon and to what extent Russian oil supplies to the European market will be restored. If this does not happen, Russia will remain dependent mainly on consumers in India and China, which will prevent discounts from being reset," he added.
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