At the same time, Birol expects that Russian oil production will be reduced by about two million barrels of oil per day by the end of the first quarter of next year. In March of this year, Russia’s production amounted to more than ten million barrels per day.
The decline in Russian oil production is due to the sanctions of Western countries aimed at Russia, which are in retaliation for its military invasion of Ukraine.
In this regard, the date of December 5, when the ban on the import of Russian oil by sea will enter into force in the European Union, and on the same day its price will also be capped. The ceiling, the specific amount of which is not yet known, was previously agreed upon by the G7 countries, Australia and the European Union. In the case of the EU, the ban on the import of Russian oil products will be added on February 5.
The aim of these measures is to deprive Russia of income from oil exports. The country will thus have to look for buyers in other markets.
Despite the sanctions, Bulgaria will allow exports from the refinery of the Russian company Lukoil
Kudos to Norway
At the energy conference, Birol also praised Norway for increasing gas exports to Europe when the continent needed it most and Russian supplies disappeared.
“I would like to thank Norway for increasing exports to Europe in a difficult time and for proving once again that the country is a reliable supplier,” he said.
Birol also commented on renewable energy sources. He said he sees a positive that huge amounts of money are being invested in renewables and low-carbon solutions.
According to him, the IEA will soon publish new figures that show that investments in renewable sources in Europe have never been as high as they are now. According to him, investments are driven by considerations of energy security, climate commitments and the desire of countries to support new industrial development.
Russian oil has ceilinged itself on the markets