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 Broadcast Communications 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 Broadcast Communications.
More InformationNEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...
PARIS, France: Fast-fashion giant Shein has been fined 40 million euros by France's antitrust authority over deceptive discount practices...
PALO ALTO/TEL AVIV: The battle for top AI talent has claimed another high-profile casualty—this time at Safe Superintelligence (SSI),...
FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...
Birmingham [UK], July 7 (ANI): Indian pacer Akash Deep mesmerised one and all with a ten-wicket haul in a critic-silencing, era-defining...
Birmingham [UK], July 7 (ANI): Following his side's win over England, Indian pacer Akash Deep revealed that he played the match because...
Paris is withdrawing its troops after the African country scrapped a decades-old defense agreement France has handed over a military...
New Delhi [India], July 1 (ANI): On the occasion of the approval of the new 'Khelo Bharat Niti 2025', Prime Minister Narendra Modi...
Mumbai (Maharashtra) [India], July 1 (ANI): The Indian Institute of Creative Technologies (IICT) opens admissions for its first batch...
New Delhi [India], July 1 (ANI): In a significant step to bolster India's research and innovation ecosystem, the Union Cabinet on Tuesday...