The Strategist

IEA records sharp increase in Russian oil production

07/14/2022 - 09:27

The International Energy Agency (IEA) reports that Russia's oil production climbed by 490,000 barrels per day in June, reaching 11.07 million barrels per day. The IEA anticipates a drop in Russian production in light of the European Union's embargo on Russian oil.

According to an IEA estimate published in July, Russia produced 330 000 fewer barrels per day of oil in June than it had before the invasion. The nation produced 11.07 million barrels per day in June, an increase of 490 thousand barrels over May. The average annual production, according to the IEA, will be 10.6 million bpd in 2022, 260,000 less than in 2021.

The paper states, "We anticipate a fall in Russian oil production in July along with the anticipated decline in refinery utilization, and believe it will continue to decline gradually when the EU oil embargo is implemented."

Russian oil exports decreased by 250,000 barrels per day in June, down to 7.4 million barrels per day, according to estimates from the IEA. This was the lowest figure since August 2021, the agency states. According to the IEA, export revenues grew by $20.4 billion, or 40%, over the previous year as a result of higher oil prices.