Oil Embargoes and Price Controls: The Russian Industry’s Upstream Battle

Posted: February 18, 2023

RP Weekly Recap | February 10-17

Summary

Despite surprisingly robust production and exports, bans and price controls aimed at Russian oil are having the “intended impact,” according to the International Energy Agency. Due to the widening gap between the prices of Russian Urals oil and Brent crude, the IEA anticipates additional declines in Russian exports and production in the upcoming months. In 2023, the growth of the world’s oil demand is anticipated to ramp up, with China contributing significantly to the anticipated rise. Due to the oil embargo and price restrictions imposed by the West, oil deliveries are anticipated to increase by 1.1 million barrels per day in 2023; nonetheless, additional crude supplies are required to prevent stock withdrawals.


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