OPEC Reduced Expectation of Russian Oil Supply
Posted: 09/11/2014 03:09:29 Edited: 09/11/2014 04:09:29 Clicks: 2155
The report which was published by OPEC on Wednesday reduced expectation of Russian oil supply in 2015 and it also claimed that persistent uncertainty of geopolitics would continue restricting the prospect of Russian economic growth.
The new report published by OPEC who represented the benefit of oil exporter pointed out that Russian oil supply would be 10.51 barrels per day which slightly lower than expectation of daily average 10.53 barrels in 2014, proposed by OPEC.
At the same time, report also decreased growth expectation of Russian GDP in 2014 to 0.3% and it considered that Russia would have 1.1% of economic growth in 2015. OPEC in its monthly report of oil market on Wednesday wrote, “Continuous uncertainty of geopolitics is restricting the prospect of Russian economic growth more and more greatly, on currency devaluation, higher rate of inflation and weak growth performance of retail sale.” New economic sanctions of EU will cause Russian GDP growth which supposed to increase at a higher speed become impossible.
On Monday, EU announced the new sanctions on Russia, including restricting operation of several the largest Russian state-owned oil corporations in Europe. However, actual punishments have not been carried out yet. Officials of EU claim that they still need to assess whether cease-fire agreement reached by pro-Russian separatists and Ukrainian government troops can be maintained or not.
Russia has already become a key participant in oil and gas export market. Energy industry accounts for about 25% of Russian total GDP. Russian is also a main resource for EU energy consumption. Norway is a competitor whose scale is the nearest to Russia in European market.
Due to impacted by Russia, OPEC reduced the expectation of non-OPEC oil supply in 2015 in its report. New predicted value was 57.16 million barrels per day.
The new report published by OPEC who represented the benefit of oil exporter pointed out that Russian oil supply would be 10.51 barrels per day which slightly lower than expectation of daily average 10.53 barrels in 2014, proposed by OPEC.
At the same time, report also decreased growth expectation of Russian GDP in 2014 to 0.3% and it considered that Russia would have 1.1% of economic growth in 2015. OPEC in its monthly report of oil market on Wednesday wrote, “Continuous uncertainty of geopolitics is restricting the prospect of Russian economic growth more and more greatly, on currency devaluation, higher rate of inflation and weak growth performance of retail sale.” New economic sanctions of EU will cause Russian GDP growth which supposed to increase at a higher speed become impossible.
On Monday, EU announced the new sanctions on Russia, including restricting operation of several the largest Russian state-owned oil corporations in Europe. However, actual punishments have not been carried out yet. Officials of EU claim that they still need to assess whether cease-fire agreement reached by pro-Russian separatists and Ukrainian government troops can be maintained or not.
Russia has already become a key participant in oil and gas export market. Energy industry accounts for about 25% of Russian total GDP. Russian is also a main resource for EU energy consumption. Norway is a competitor whose scale is the nearest to Russia in European market.
Due to impacted by Russia, OPEC reduced the expectation of non-OPEC oil supply in 2015 in its report. New predicted value was 57.16 million barrels per day.
