EU embargo on Russian oil to prompt decline of 2.4 mln bpd in global supply of oil, petroleum products - IEA

MOSCOW. Sept 14 (Interfax) - The EU embargo on imports of Russian oil will lead to a reduction of the world supply of oil and petroleum products by 2.4 million bpd, according to the International Energy Agency's (IEA) monthly report.

In particular, the market will see a shortfall of 1.4 million bpd of oil and 1 million bpd of petroleum products after the restrictions enter into force.

An EU ban on maritime services may force further reallocations from third countries not agreeing to the proposed G7 price cap. Russian total oil production is forecast to decline to 9.5 million bpd by February 2023, a 1.9 million bpd drop compared to February 2022, the IEA said.

As reported, the EU imposed an embargo on the purchase of Russian oil by sea from December 5, 2022 and on the purchase of petroleum products from February 5, 2023. The introduction of a price cap on Russian oil is currently being discussed in order to limit Russia's oil revenues.