Oil demand
Oil demand in 2022 will increase by 2.1 million barrels per day. – up to 99.7 million, follows from the IEA report. Forecast downgraded by 1.1 mln bpd. because of the situation in Ukraine. Regarding the increase in Iran’s contribution to the industry, the IEA expresses a reserved view. If the country succeeds in negotiations on the nuclear program, Iran may add about 1 million barrels per day to the market. within six months, the agency suggested.
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Russia’s largest oil companies come under EU sanctions
Since the end of February, many Western countries began to impose sanctions against Russia, which, among other things, affected the energy sector. In particular, US President Joe Biden imposed a ban on the import of Russian oil, gas and other energy resources. At the same time, he acknowledged that not all Western partners will be able to join the embargo, because Europe is more dependent on supplies from Russia than the United States.
After that, European Commission President Ursula von der Leyen informed on the preparation of a plan for an accelerated phase-out of Russian energy carriers. “By the end of May, we will propose a phase-out of dependence on Russian gas, oil and coal by 2027. This will be supported by the necessary national and European resources,” she said.
In 2021, the EU imported €99 billion worth of Russian energy – 62.5% of all merchandise imports from Russia to the EU and 4.7% of all merchandise imports to Europe as a whole. EU countries imported crude oil worth €48.5 billion, oil products worth €22.4 billion, natural gas (including LNG) worth €17.8 billion and coal worth €5.1 billion, according to data from the European Commission.
In total, the EU imports 90% of gas, of which Russia provides almost half (about 45%). The country also accounts for about 25% of Europe’s oil and 45% of coal imports.
On March 15, the European Union imposed new sanctions on Russian companies, including Rosneft, Gazprom Neft and Transneft. Transactions and transactions with them in the jurisdiction of the EU are prohibited, since these structures are controlled by the state. But the European Union did not ban trade in oil, gas and other energy resources with these companies.
As Nikolai Kobrinets, Director of the Department for European Cooperation at the Ministry of Foreign Affairs, noted earlier, the European Union will not benefit from an energy confrontation with Russia, since Moscow has a greater margin of safety and “strong nerves.” “Russia remains a reliable supplier, a guarantor of world-class energy security. We cherish this reputation, but we are ready for a tough confrontation in the energy sector, if necessary, ”says the diplomat.
At the same time, on March 16, The Times of India, citing sources informedthat India is close to signing an agreement with Russia to import 3.5 million barrels of oil at a significant discount.