A proposed EU embargo on Russia could hit 3 million barrels per day of crude oil, Fitch Ratings said in a statement on Thursday.
The global rating agency said the embargo would affect about 2 million barrels per day of oil products imported into the bloc from Russia.
The ban is expected to keep prices at high levels in the short term, as it would require redirecting trade flows from other regions and utilizing spare capacity, Fitch noted.
Russia’s total production is projected to decline by 2-3 million barrels per day by end-2022.
It added that if the EU agrees to an embargo, the market balance will largely depend on the OPEC+’s policies, particularly Saudi Arabia, its largest producer.
At the beginning of May, the European Commission proposed a complete import ban on all Russian oil seaborne and pipeline, crude, and refined.
By Tuba Sahin