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IEA Sees Russia Oil Output Down 20% When EU Ban Takes Effect

  • EU embargo takes full effect in February, including products
  • 2.3m b/d of crude and products would need to find new homes
Bloomberg business news
WATCH: The IEA’s Toril Bosoni says Russia could extend its release of barrels from governments’ emergency reserves beyond October.Source: Bloomberg
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Russia’s oil output is set to fall roughly 20% by the start of next year as a European Union import ban comes into force, according to the International Energy Agency.

Gradual monthly declines will start as soon as this month as Russia cuts back refining, and will quicken as the embargo takes effect, the IEA said in a market report. The agency expects to see close to 2 million barrels a day shut in by the start of 2023, despite a healthy recovery in production in recent months.