Reuters reported on Friday, citing sources familiar with the data, that the production of crude oil and condensate in Russia decreased slightly in March compared to February.
Russia pumped 11.01 million bpd of crude and condensate in March, down from 11.08 million bpd it produced in February, according to Reuters sources.
While Russian production did not drop much between February and March, buyers in the West continue to shy away from Russian oil shipments, and many analysts say it is only a matter of time before a portion of Russian supplies exit the market.
Russian oil exports fell last week, with average shipments of about 3.63 million barrels per day between March 17 and March 23, down 26.4 percent from the previous week, Bloomberg reported on Monday, citing industry data seen by it.
In another sign that Russia may struggle to sell all of its shipments, pipeline operator Transneft told local oil companies that it would stop absorbing crude that was not sold after storage capacity was completed, according to Reuters.
Over the past few weeks, Russian companies have several times failed to sell shipments through spot bids, with no one in Europe bidding despite Huge reduction in the price of the main Ural ore Compared to the global benchmark Brent crude, which expanded to $30 a barrel recently.
Standard Chartered said last month that Russia would have to halt some of its oil production because it would not be able to sell all the volumes displaced from European markets to other regions, while remaining in a recession for at least the next three years.
The International Energy Agency had previously estimated that the oil market’s loss of Russian crude could reach 3 million barrels per day during the second quarter, but most forecasts are more cautious, estimating a loss of 1 to 2 million barrels per day.
Standard & Poor’s Global expects Russian crude oil production to be halted by 2.8 million barrels per day due to export disruptions stemming from the sanctions, and buyer alienation, from late April until the end of 2022.
It is estimated that disruptions will remain moderate at 2 million barrels per day by the end of 2023, with shipments redirected or more sold with caution.
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