IEA predicts a drop in oil production in Russia by 1 million b/d in 2023

The International Energy Agency (IEA) predicts that oil production in Russia in 2023 will decrease by 1 million b/d. This was announced by the director of the agency Fatih Birol. In this regard, according to him, volatility may arise in the oil markets.

“We believe that oil production in Russia will decrease by almost 1 million b / d in the next quarters,” he said at a seminar at the Washington-based Center for Strategic and International Studies. According to his forecast, oil production in the United States in 2023, on the contrary, will grow by about 1 million bpd.

In addition to oil production in Russia, one of the key factors affecting the volatility of the oil markets, according to the director of the IEA, will be the pace of development of the Chinese economy. He recalled that in 2022, the consumption of oil and gas in this country decreased for the first time in 40 years, despite the fact that China is the main importer of oil and LNG in the world. According to his forecast, if the Chinese economy continues to recover, this could put pressure on oil markets.

On February 1, President Vladimir Putin’s decree on special measures came into force in response to the ceiling on Russian oil prices, which was introduced by the G7 countries and the European Union. The price ceiling for oil from Russia came into effect on December 5, 2022.

More details – in the material “Oil is in temporary surplus”.

Anastasia Larina