January 11, 2023 08:09 GMT
Russia Oil Output Stable, Price Cap Costs Russia $170mn/day
Russia’s oil production remains stable in January, the daily Vedomosti said, but the price cap leads to lost revenue for Russia of $170mn/ day, according to a researcher at CREA.
- Russia’s oil output in the first nine days of January stood at around 10.9mbpd, up by 0.1% from December levels, the daily Vedomosti, citing sources familiar with energy ministry data.
- In 2022, Russian oil output rose 2% on the year to 10.7mbpd.
- The EU/G7 price cap on Russian oil exports is costing the Kremlin $170mnn/day and lost revenues will rise further to $280mn/day when the cap is extended to refined products from 5 Feb, Lauri Myllyvita, lead analyst at research institute CREA said.
- “The EU’s oil ban and the oil price cap have finally kicked in and the impact is as significant as expected”, Myllyvita said, meaning the declining prices for Russian Urals.