Russian oil and gas condensate production fell below 10 million barrels per day (bpd) on Monday to its lowest since July 2020, two sources familiar with data said on Tuesday, as sanctions and logistical constraints hampered trade.
Russian oil production has been under a massive downward pressure amid sanctions from the West over Moscow’s role in Ukraine.
The United States introduced its ban on oil imports from Russia last month, while sanctions on Moscow’s financial institutions made it hard to process payments for Russian oil.
Sources said Russia’s average oil output fell to 10.32 million bpd on April 1-11 from 11.01 million on average in March, a decline of more than 6%.
OPEC told the European Union on Monday that current and future sanctions on Russia could create one of the worst ever oil supply shocks and it would be impossible to replace those volumes, and signalled it would not pump more.
OPEC cuts 2022 world oil demand forecast due to Ukraine war
Russian Deputy Prime Minister Alexander Novak said on Thursday that Russian oil production may decline by 4% to 5% in April from March due to problems with insurance and usage of vessels.
The sources said, output fell further to 9.76 million bpd on Monday alone, according to Reuters calculations, the lowest since 9.37 million bpd on average in July 2020, when output and demand were dented by the spread of coronavirus.
One of the sources also said that Russian largest oil producer by output, Rosneft, has registered the largest decline in output, which fell to 2.87 million bpd on April 1-11 from 3.35 million bpd in March.
Russian Energy Ministry and Rosneft did not respond to a request for comments.
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