Russia continues to export and produce huge amounts of oil, although it has previously said it will cut production. Global demand for energy is declining as the recession intensifies, and additional oil supplies weigh on prices.
According to The Wall Street Journal, Russia can bypass its own restrictions on oil production. Oil exports were reportedly higher than expected when Russia announced a 500,000-ton export cut. barrels per day.
Exports from Russia reflected in prices
This additional supply weighs on oil prices, which are also under pressure from recession fears and doubts about a recovery in demand in China.
Brent crude, the international benchmark, fell 17%. since early April and dipped below $70 a barrel earlier this week before returning to that level. And the US benchmark West Texas Intermediate hit a five-week low on Wednesday.
Analysts at Morgan Stanley this week lowered their year-end Brent oil price forecast from $87.50 to $75 a barrel, citing a surge in demand from an already depleted China, as well as still high oil production in Russia.
Mining limit
In February, Russia announced a 500,000 bpd cut in production. Last month, he promised to extend those cuts. Meanwhile, Saudi Arabia and other OPEC+ members have also announced production cuts.
Of course, exporting more oil is not the same as extracting more oil from underground. And it is possible that Russia may reduce production while increasing exports in the short term, followed by a decline.
In fact, Russian data shows that more oil wells were idle in March, indicating a decline in mineral production.
Source: Wprost
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