Russia May Raise Crude Oil Exports if EU Ban Cuts Refining

image is BloomburgMedia_RNG2KYT0AFB701_26-12-2022_17-31-17_638076096000000000.jpg

Oil pumping jacks, also known as "nodding donkeys", operate in an oilfield near Neftekamsk, in the Republic of Bashkortostan, Russia, on Thursday, Nov. 19, 2020. The flaring coronavirus outbreak will be a key issue for OPEC+ when it meets at the end of the month to decide on whether to delay a planned easing of cuts early next year.

Russia may increase its crude oil exports if the European Union ban on imports of the nation’s fuel results in lower refinery throughput, vice prime-minister Alexander Novak said in an interview to Tass.

“If there are problems with the sale of petroleum products, oil refining to some extent can be replaced by additional volumes of oil exports,” Novak said. There’s still a possibility that the EU ban won’t affect Russian oil refining at all, he said. 

The EU’s ban on Russian oil-product imports comes in force from Feb. 5, and is on top of the crude imports restriction imposed from early December.

Red more: Russia Says It May Cut Daily Oil Output by 700,000 Barrels

Russia will produce at least some 490 million to 500 million tons of oil next year, Novak said on Sunday reiterating his earlier estimates. That’s the equivalent to some 9.84 million to 10.04 million barrels per day, based on the 7.33 barrel-per-ton ratio. 

This year Russia may produce 535 million tons of oil, Novak said on Friday in an interview with Rossiya-24 TV channel.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

By Bloomberg News

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