Russia’s crude producers are struggling to place all their oil on international markets, as domestic refinery production is slumping amid lower demand.
Top producer Rosneft is the biggest loser selling all its oil abroad, according to a Bloomberg report based on the Russian Energy Ministry data.
Following Russia’s invasion of Ukraine, Rosneft is suffering from a combination of lower exports, lower refinery runs domestically and a growing list of Western oil firms leaving joint projects in Russia.
A top oil and gas global exporter for years, Russia claims that it has started restoring output lost and finding new markets.
According to analysts Russia’s oil production could lose 3 million barrels per day in the second half of 2022, and its production is set to be impacted for years as ongoing sanctions keep hitting the Russian economy.
Rising oil and gas prices have resulted in record-high revenues for all producers in the world, including giant exporter Russia.
Some analysts estimate that there is no way to remove Russian oil from the market entirely without sending oil prices much higher, even breaking the $200 per barrel barrier.