EU embargo would send Russian oil to 18-year low
The plan to bar all Russian oil imports is facing resistance within the European Union.
Expand oil sanctions Russia for the war in Ukraine, including a possible embargo by the European Union (EU), would have a strong impact on the country’s oil industry and would bring its production of the commodity to the lowest level in 18 years, according to an assessment by the International Energy Agency (IEA).
In a monthly report published on Thursday, the IEA estimates that the lost supply of Russian oil was 900,000 barrels per day (bpd) in April and could reach 3 million bpd from July. For the year, that would reduce Russia’s output to 9.6 million bpd, marking its lowest level since 2004.
The EU has proposed banning all Russian oil imports, a move that has already been taken by the US and some Western allies. The plan is facing resistance within the bloc itself, however, and some of its more rigid aspects have already been abandoned.
In today’s document, the IEA cut its forecast for global oil supply in 2022 by 100,000 bpd to 99.2 million bpd. On the other hand, the Paris-based agency reiterated its forecast for world demand for the commodity this year at 99.4 million bpd.