BAKU, Azerbaijan, June 17. Russia’s products demand fell to 2.7 mb/d in April, suggesting a q/q contraction in Q2 by at least 10 percent as economic impacts intensify, Trend reports with reference to the Oxford Institute of Energy Studies (OIES).
“EU’s recently agreed embargo on Russian oil has led us to revise upwards our reference case of the expected disruptions in Russian oil production by year-end to 2.6 mb/d from 1.6 mb/d previously. This constitutes however the upper bound of the expected range of crude shut-ins from 3.9 mb/d previously, while the lower bound is slightly lifted from 1.5 mb/d,” OIES said in its latest report.
The report reveals that the EU oil ban will disrupt around 42 percent or 1.5 mb/d of total 3.5 mb/d Russian oil exports to EU by year-end, a downgrade by 0.7 mb/d from last month.
“Russian refinery runs fell by 17 percent or nearly 1 mb/d from pre-war levels in April, as sanctions affected both exports and domestic demand but also due to maintenance,” said the Oxford Institute.