Western sanctions practically did not affect oil production in the Russian Federation - FT

Exports of Russian crude oil and petroleum products to Europe, the USA, Japan and Korea have decreased by almost 2. 2 million barrels with the beginning of the acute phase of war in Ukraine, said an analytical group based in Paris. At the same time, the redirection of Russian oil export routes from Europe to India, China and Turkey has reduced the Kremlin's financial loss.

According to the new monthly Mea report, in July, oil production in the Russian Federation decreased by only 3%, compared to pre -war levels, or by 310 thousand barrels a day. The total oil exports decreased by about 580 thousand barrels. Importers from Asia took the opportunity to buy oil at a significant discount, according to the agency's message, and in June China became the largest importer of Russian oil, replacing the EU countries.

However, the increase in demand for Russian oil - compared to the situation at the beginning of the year - also indicates that it is purchased no longer at such great discounts. The EU embargo on Russian oil and petroleum products should be fully acquired in February next year, which will lead to a greater reduction in European imports. At the same time, some politicians propose to soften restrictive measures.

Last month, the European Union weakened restrictions on oil supply from Russia to non -EU countries. Meanwhile, the United States is proposing to use the Oil Price Restriction Mechanism to allow other countries to partially buy Russian oil at a price lower than market. In response to this development, the IAA increased their forecast for oil production in the Russian Federation for the second half of 2022 - up to 500 thousand barrels a day and up to 800 thousand - the next year.

In addition, according to MEA forecast, global demand for oil will increase this year - up to 380 thousand barrels per day. Due to record gas prices after the start of the Russian invasion of electricity, there is a "significant" gas transition to oil, which is expected that the consumption of crude oil will increase by the end of the year. The use of oil for electricity has also increased through the heat in a number of countries - mainly in the south of Europe and the Middle East.