The main reason for the dynamics of production may be the refusal of European traders to buy oil from Russian state-owned companies after May 15.
Since the beginning of April, Russia has reduced its average daily oil production by 8.7% or to 1.37 million tons compared to March. On Friday, April 29, Kommersant reports, citing industry sources.
“The main factor for the dynamics of production may be the refusal of European traders to buy oil from Russian state-owned companies after May 15, as well as the continued trend towards a decline in domestic refining, “the newspaper wrote.
According to interlocutors, among Russia’s largest oil companies, production dropped the fastest in Rosneft – by almost 20%, up to 370,000 tons per day. Gazprom Neft’s production for the 26 days of April dropped by only 4%, averaging 108,000 tonnes per day. Surgutneftegaz also reduced production by 4%, to 163,000 tonnes.
Lukoil has become the only major Russian oil company that maintains production levels. In April, he increased production by 0.5% to 219.5 thousand tons per day.
It is likely that the company was able to maintain volumes by increasing exports to its refineries in Europe and taking advantage of having its own Litasco trader, the report said.
Production is declining as European consumers turn their backs on Russian oil, Andrey Polishchuk of Raiffeisenbank believes it will take time and discounts to redirect some of the quantity reserved for the European market.
At the same time, it was noted that, in general, oil exports from the Russian Federation, despite the decline in production, increased due to a reduction in refining. During the 26 days of April, exports increased by 8.8% compared to March, to 709.3 thousand tons per day.
Recall that in March Russia’s oil exports dropped by a quarter. Russia has struggled to sell its oil following the U.S. embargo and tacit boycott in response to the war in Ukraine. According to media reports, today approximately 70% of Russia’s oil supplied for export finds consumers struggling.
It was also reported that in March Russia lost $ 3.6 billion in oil and gas revenues.
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Source: korrespondent
