Falling oil prices are causing ripples in related industries

Oil prices fell despite OPEC+ production cuts and the war in Ukraine amid growing economic instability.

New data from China showed manufacturing activity in the world’s biggest oil importer eased in March, defying expectations for another expansion.

The recent collapse of First Republic Bank fueled negative sentiment, as did signals from the Fed chairman that another interest rate hike is coming this week as the US central bank continues its successful fight against inflation.

In a more worrying sign, US diesel demand is declining.

So far, defaults have been successfully avoided, and there is no reason why this year should be exceptional. This will leave the spotlight on the Fed and its interest rate policy.

Gas production in Russia decreased

The level of gas production in Russia has dropped by 10% this year, amounting to 180 billion cubic meters.

Gazprom and Gazprom Neft each cut production by 18%. Gazprom’s supply to China has not yet equaled its pre-war exports to the European Union.

Lukoil reflected a decrease in gas production from 3% to 14%.

Rosneft gained 70% more gas volume at 19 bcm, and Novatek 1% more at 20 bcm.

An industry expert said the increase in output by independent manufacturers is good despite a sharp drop in exports and weak domestic demand.

Russian gas production will decrease from last year’s 673 billion cubic meters to 630 billion cubic meters by the end of this year.

Gazprom production will decrease from 412 billion cubic meters to 390 billion in 2023.

At a conference on the Barents Sea last week, Norway’s Minister of Oil and Energy called on oil and gas companies to fulfill their social responsibilities and not leave more natural gas resources in the Barents Sea.