Russia: it is internal demand that keeps oil production high. And Europe awaits the crisis
According to government data and analysts cited by Bloomberg , the start of the summer season and favorable economic conditions for Russian refiners have helped Russia's oil production rebound from its April and May lows.
Russia's oil production increased in June and is approaching levels last seen in February, just before the Russian invasion of Ukraine. Most of the rebound is due to increased processing by domestic refineries, which raised refining rates after lowering them in April, when the US banned imports of all Russian energy products and buyers in the West. they have begun to avoid purchases of Russian crude oil and refined petroleum products.
In the first two weeks of June, crude oil processing rates at Russian refineries rebounded to 5.2 million barrels per day (bpd), the highest processing levels since March, according to Russian Energy Ministry data consulted. by Bloomberg.
Analysts believe processing rates could continue to rise throughout the summer, thanks to government support for refineries and favorable economic conditions for refining, as the price of Russia's flagship grade, Urals, is more than more than 30 dollars a barrel compared to Brent.
Russian crude oil and condensate production increased by 5% in June, reaching an average of 10.7 million bpd, Russian newspaper Kommersant reported earlier this week, citing sources with knowledge of production numbers. According to Kommersant's sources, Russia's oil exports fell 3.3% in June, while domestic refining demand is increasing seasonally.
Russian oil production will continue to pick up in the summer, Russian Deputy Prime Minister Alexander Novak said Thursday, following the OPEC + meeting which approved a monthly increase of 648,000 bpd for August.
“We believe that we will guarantee the recovery in the summer period; Russia's role in achieving supply-demand balance will be critical, ”said Novak, quoted by the Russian government website.
On the one hand, this increase in Russian activity is fortunate, because it still supplies the great demand for distilled products, keeping the global price under control. On the other hand, it is the further sign of the failure of Western tariffs.
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The article Russia: it is internal demand that keeps oil production high. And Europe awaits the crisis comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/russia-e-la-domanda-interna-che-mantiene-elevata-la-produzione-di-petrolio-e-leuropa-attende-la-crisi/ on Sun, 03 Jul 2022 08:00:43 +0000.