• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 28 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour How Far Have We Really Gotten With Alternative Energy
  • 3 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 16 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 4 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

Domestic Demand Helps Russian Oil Production To Rebound

The start of the summer driving season and favorable economics for Russian refiners have helped Russia’s oil production to rebound from the lows in April and May, according to government data and analysts cited by Bloomberg.

Russia’s oil production rose in June and is approaching the levels last seen in February, just before the Russian invasion of Ukraine. Most of the rebound is due to higher intake from domestic refiners, which have increased processing rates after slashing them in April, when the U.S. banned imports of all Russian energy products and buyers in the West started shunning purchases of Russian crude oil and refined petroleum products.

In the first two weeks of June, crude processing rates at Russian refineries bounced back to 5.2 million barrels per day (bpd), the highest processing levels since March, per Russia’s Energy Ministry data seen by Bloomberg.

Analysts believe the processing rates could continue to rise through the summer, thanks to government support for refiners and favorable refining economics, as the price of the Russian flagship grade, Urals, is more than $30 per barrel lower than Brent.

Russia’s crude and condensate production increased in June by 5% to an average of 10.7 million bpd, Russian daily Kommersant reported earlier this week, quoting sources familiar with the production numbers. In June, Russia’s oil exports dropped by 3.3%, while domestic refining demand is rising seasonally, according to Kommersant’s sources.

Russian oil production will continue to recover in the summer, Russia’s Deputy Prime Minister Alexander Novak said on Thursday, after the OPEC+ meeting, which rubberstamped a monthly 648,000 bpd increase for August. 

“We believe that we will ensure recovery in the summer period; the role of Russia in achieving a balance of supply and demand will be a key one,” Novak said as quoted by the website of the Russian government.

By Charles Kennedy for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News