Russia losing its market: Oil production falls amid sales difficulties - Bloomberg
Illustrative photo: Russian oil production continues to decline (Getty Images)
Oil production in Russia fell for the second consecutive month in January. The decline is due to difficulties in selling oil amid US sanctions pressure, Bloomberg informs.
Read also: Ukrainian army chief reveals results of January strikes on Russian oil facilities
The outlet, citing informed sources, reports that in January the aggressor country produced an average of 9.28 million barrels of oil per day.
This figure is 46,000 barrels per day lower than the already reduced December level, and nearly 300,000 barrels per day below what Russia is allowed to produce under the OPEC+ agreement.
It is noted that the aggressor country has classified data on oil production, exports, and the operation of its refineries, making an independent assessment of the situation difficult.
Oil piling up at sea
At the same time as production falls, Russian oil stocks stored on tankers at sea are rising. This indicates that some shipments are taking a long time to find buyers amid growing sanctions pressure on Russia.
Bloomberg notes that Russia’s oil production cuts could lead to a loss of its share in the global market.
Turning away from Russian oil
Indian company Reliance Industries recently exported aviation fuel to Europe for the first time since the EU ban on imports of products from Russian oil came into effect.
Indian refineries have increasingly refused Russian premium-grade oil due to fears of secondary sanctions and payment processing issues.
Additionally, in January, Russia’s revenue from oil and gas exports nearly halved year-on-year, falling to its lowest level since July 2020.
RBC-Ukraine previously reported that, according to Bloomberg, India’s imports of Russian oil could be cut in half following a trade agreement with the US.
