We will not be without oil as Russian production dwindles due to the war in Ukraine and sanctions against Moscow, the International Energy Agency (IEA) said Thursday. There is less demand for oil in the world, and oil-producing countries in the Middle East and the US can support some of the production.
Russian oil production fell by nearly a million barrels per day in April, according to the IEA. Because of the war, western countries are getting less and less oil from Russia, which is why Russian oil companies are reducing their production. Meanwhile, Russia has sold more oil to China and India and continues to sell oil to the European Union. As a result, billions of dollars continue to pour into the ballot boxes of the Russian war.
The IEA predicts that Russian production will decline further this year as sanctions begin to weigh in. The agency expects three million barrels less to be pumped into the country every day from July. The EU is working on a large-scale boycott of Russian oil. Before the invasion of Ukraine, daily production in Russia was about ten million barrels.
Global oil demand growth is hampered by coronavirus restrictions in China, reducing the need for oil. China is the largest oil importer in the world. The IEA estimates that the average daily demand for oil this year will be 99.4 million barrels. This is an increase of 1.8 million barrels compared to last year.
IEA member states are also using their strategic oil reserves to bring more oil to the market, driving fuel prices down at the pump.
Source: NU
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
