Russia's oil output to fall by 20% by 2023, IEA says

According to the International Energy Agency, Russia's oil output is expected to fall about 20% by the start of next year as a European Union import ban comes into force.

As Russia cuts back refining, gradual monthly declines will begin and will be faster as the embargo takes effect, the IEA said in a market report. The agency expects to see close to 2 million barrels a day shut in by the end of 2023, despite a healthy recovery in production in recent months.

The EU is going to halt most crude purchases from Russia from December 5 in a bid to cut off revenue streams that the Kremlin uses to finance its war in Ukraine. An EU ban on Russian oil-product shipments takes effect on February 5.

Russia has risen its oil output in the past three months, reaching almost 10.8 million barrels a day in July, due to higher domestic crude-processing and robust exports as the country redirects crude flows to Asia.

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