Russia benefits most from OPEC cuts in oil production – Kommersant
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Russia has benefited the most from limiting oil production by OPEC+ countries. The decline in oil production in Saudi Arabia led to a decrease in the growth of its economy, while the Russian budget began to receive more funds against the backdrop of higher energy prices. Writes about it Bloomberg.
Saudi Arabia has started cutting oil production since February. At that moment, the country was producing 500,000 barrels per day (b/d) more than Russia. By July, Saudi Arabia reduced production by 1.22 million b/d, which is 250 thousand b/d less than oil production in Russia.
Against the backdrop of a decline in oil production, the growth of the Saudi Arabian economy slowed down in the second quarter. As a result of production restrictions, the country’s economy has become one of the slowest, whereas before February it was one of the fastest growing.
Russia’s oil and gas revenues rose in July for the first time in 2023. Higher energy prices affect tax rates per barrel of oil and also lead to lower oil rebates. Rising prices compensated for Russia’s decline in oil production and exports, Bloomberg notes.
In December 2022, the European Union and the G7 countries introduced a price limit for oil from Russia – it cannot be sold above $60 per barrel. From February 5, 2023, there is also a ceiling of $100 and $45 per barrel (for products that are traded at a premium and discount to oil, respectively). In June, by data According to the International Energy Agency, Russia’s revenues from the export of oil and petroleum products have almost halved year on year. Russia cut offshore oil exports in August, now estimated at 2.94 million bpd.
About Russia’s plans to reduce oil exports – in the material “Kommersant” “Debarrelization Operation”.
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