- The experts also forecast that oil production in Russia in December against the background of the EU embargo will decrease by 14%
According to TASS, Russia's state-owned news agency article published on November 9, 2022, Russia is unlikely to be able to quickly divert the amounts of oil supplied to Europe to other markets due to the sanctions on the insurance of Russian ships under the initiative to impose a price cap on oil from Russia, according to a forecast from the Energy Development Center.
"We believe that the volume of oil supplied to Europe cannot be quickly redirected to other markets due to the introduction of restrictions on the insurance of Russian oil cargoes by the West as part of the price cap," the report said.
At the same time, experts noted that the share of Russian oil supplies to the EU in total exports fell to below 22% in September, as European companies are preparing for an embargo on oil from Russia, which comes into force on December 5.
The experts also forecast that oil production in Russia in December against the background of the EU embargo will decrease by 14%, or 1.5-1.7 mln barrels per day compared with the average production level in June - October. "If this forecast comes true, global oil prices should rise significantly, also taking into account the decision of OPEC+ to cut production from November," the report noted.
