Russia can maintain oil output at pre-conflict levels, says JP Morgan
J.P. Morgan on Thursday forecast Russia would be able to maintain its oil output at pre-Ukraine conflict levels due to steady demand from China and India but said it might struggle to reroute some of its oil product exports away from Europe.
“We believe Russia will be able to maintain its oil production at pre-war levels of 10.8 mbd (million barrels a day) but will have difficulties getting back to peak pre-COVID volumes of 11.3 mbd,” the bank said.
J.P. Morgan expects Indian and Chinese demand collectively to increase by 1 million bpd this year.
Russia has so far managed to reroute oil exports from Europe to India, China and Turkey, which snapped up cheap barrels despite the Group of Seven’s $60 price cap on Russian crude.
