Russia May Hike Crude Oil Exports If EU Ban On Its Fuel Imports Results In Lower Refinery Output - United States Brent Oil Fund, LP ETV (ARCA:BNO), Vanguard Energy ETF (ARCA:VDE)

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Russia is likely to hike its crude oil exports if the European Union ban on imports of its fuel results in lower refinery throughput.

What Happened: “If there are problems with the sale of petroleum products, oil refining to some extent can be replaced by additional volumes of oil exports,” Deputy Prime Minister Alexander Novak said, according to a Bloomberg report that cited his interview with Tass.

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There’s still a possibility the EU ban won’t impact Russian oil refining at all, Novak added.

Reiterating his earlier estimates, Novak said Russia will produce at least 490 million to 500 million tons of oil next year. This year Russia’s production may amount to 535 million tons of oil, Novak said on Friday in an interview with Rossiya-24 TV channel, according to the report.

Crude futures had gained on Friday amid reports suggesting Russia could cut oil production.

Novak reportedly told state television that Russia may reduce oil output by 500,000 to 700,000 barrels per day in response to price caps placed on the country’s exports, which came in reaction to Russia’s invasion of Ukraine. It would amount to an output cut of 5-7%.

Price Action: The United States Brent Oil Fund BNO closed 2.96% higher on Friday while the Vanguard Energy Index Fund ETF VDE closed 3.29% higher.

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Image and article originally from www.benzinga.com. Read the original article here.