• Russia exports around 7 million to 8 million barrels of crude daily
• The IEA forecasts oil demand reduction by 1.3 million bpd for the second to fourth quarter
The International Energy Agency (IEA) predicted reduction of around three million barrels per day of oil and products from Russia amid its invasion of Ukraine.
"We see a reduction in total (Russian) exports of 2.5 million bpd, of which crude accounts for 1.5 million bpd and products 1 million bpd," the IEA said on Wednesday in its monthly oil report.
The Paris-based agency added that rising commodity prices and sanctions on Russia "are expected to appreciably depress global economic growth" and impact inflation.
Russia exports around 7 million to 8 million barrels of crude globally daily.
The IEA forecasted a reduction in oil demand globally by 1.3 million bpd for the second to fourth quarter of this year.
Additionally, for the full year, it cut its growth forecast by 950,000 bpd to 2.1 million bpd for an average of 99.7 million bpd.
The IEA also lowered Russian domestic demand for oil products.
With the reduction in oil demand, this year becomes the third year of demand below pre-pandemic levels.
Other than the Russia-Ukraine crisis which has impacted oil output, OPEC+ producers including Saudi Arabia and United Arab Emirates have also been unable to increase output.
The IEA predicts a global supply deficit of 700,000 bpd in the second quarter.
Picture Credits: Reuters