RT.com
17 Mar 2023, 06:14 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, Energy Minister Nikolay Shulginov said on Wednesday.
In February, Russia announced it would respond to Western sanctions by halting sales to countries imposing the so-called price cap, and voluntarily reduced oil production by 500,000 barrels per day. 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 Entertainment Sun 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 Entertainment Sun.
More InformationHONG KONG: Hong Kong's first authorized protest took place since the end of COVID-19 restrictions and under new strict security ...
MOSCOW, Russia: A new campaign has begun across Russia to attract badly needed recruits to replenish its troop numbers for ...
WASHINGTON D.C.: US House of Representatives Speaker Kevin McCarthy has said that lawmakers will move forward on legislation aimed at ...
CROWNPOINT, New Mexico: Navajo Technical University, located on the largest Native American reservation in the US, has become the first ...
WEST READING, Pennsylvania: An explosion occurred at a chocolate factory in Pennsylvania, killing seven people and seeing ten staff members ...
OTTAWA, Canada: US President Joe Biden and Canadian Prime Minister Justin Trudeau have announced a plan to close a loophole ...
Mumbai (Maharashtra) [India], March 30 (ANI): Bombay High Court on Wednesday ordered to quash the FIR registered against actor Salman ...
New Delhi [India], March 30 (ANI): Fans are bent on knowing whether Parineeti Chopra will marry AAP leader Raghav Chadha ...
Mumbai (Maharashtra) [India], March 30 (ANI): On the auspicious occasion of Ram Navami, makers of 'Adipurush' launched a new poster. ...
New Delhi [India], March 30 (ANI): Amid wedding rumours, actor Parineeti Chopra and Aam Aadmi Party leader Raghav Chadha were ...
A journalist for Radio Free Asia is among three critics of China critics whose identities were used in an elaborate ...
Mumbai (Maharashtra) [India], March 29 (ANI): What's life without music? Be it a film or real-life event, a dash of ...