RT.com
16 Mar 2023, 23:44 GMT+10
Output will slow as Moscow reroutes EU-bound flows to other markets, the official said
Russia projects a decline in its oil and gas output this year compared to 2022, partly due to the announced production cut, Energy Minister Nikolai Shulginov said on Wednesday.
In February, Russia announced it would voluntarily reduce oil production in March by 500,000 barrels per day in response to Western sanctions as it halted sales to buyers complying with an imposed price cap. Moscow said the move was designed to restore market relations shattered by the scheme, which it branded "illegal."
Addressing the Russian Parliament, Shulginov said that for 2023 he expected "oil production levels to be slightly lower, because of the voluntary reduction in output." The minister added that "gas production volumes will continue to decline, both due to the abandonment of the European market and the timing of the rerouting of energy flows to the East."
Russia's decision to reduce its oil production this month will help balance the global oil market, which is in a surplus now, Alexander Dyukov, the chief executive of Russian oil company Gazprom Neft, a subsidiary of Gazprom, said last month.
Oil production in Russia rose to 535.1 million tons last year from 524.5 million tons in 2021. Gas production dropped to 674 billion cubic meters (bcm) in 2022 compared to 763 bcm in the previous year.
In January Russia's oil exports surged to an all-time high previously reached in February 2020 despite the Western embargo on Moscow's seaborne crude as customers were rushing to boost their stocks of the commodity, a report by the International Energy Agency showed.
Meanwhile, other major oil producers like Saudi Arabia and Algeria have warned that Western sanctions such as the price cap on Russian oil will spark uncertainty and disrupt global trade flows.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Sports Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Sports Sun.
More Information(Photo credit: Raymond Carlin III-Imagn Images) The Texas Rangers activated outfielder Wyatt Langford from the 10-day IL on Saturday...
(Photo credit: Daniel Kucin Jr.-Imagn Images) The New York Yankees have signed third baseman Jeimer Candelario to a minor league...
(Photo credit: Jasen Vinlove-Imagn Images) Veteran wide receiver Chase Claypool, who hasn't played in the NFL since 2023, is confident...
(Photo credit: Dale Zanine-Imagn Images) Ramon Laureano and Jacob Stallings delivered run-scoring doubles in the 10th inning to help...
(Photo credit: Troy Taormina-Imagn Images) Bobby Jenks, a member of the 2005 Chicago White Sox World Series championship team, died...
(Photo credit: Brad Penner-Imagn Images) Pete Alonso had two home runs and five RBIs to help the New York Mets extend their winning...
(Photo credit: Jasen Vinlove-Imagn Images) Veteran wide receiver Chase Claypool, who hasn't played in the NFL since 2023, is confident...
(Photo credit: Anne-Marie Sorvin-Imagn Images) Since COVID-19 canceled the 2020 CFL season, the Edmonton Elks have tried multiple...
(Photo credit: Kirby Lee-Imagn Images) Sacramento State head coach Brennan Marion reached into Southeastern Conference territory...
(Photo credit: Paul Witwer/Standard-Times / USA TODAY NETWORK via Imagn Images) The Houston Texans announced a $500,000 commitment...
(Photo credit: Ronald W. Erdrich/Reporter-News / USA TODAY NETWORK) Four-star wide receiver Kaydon Finley has committed to Notre...
(Photo credit: Geoff Burke-Imagn Images) Former NFL linebacker Bryan Braman is 'in the fight of his life,' battling a rare and aggressive...