Russia pumped 211m tons of oil in 5m'25, down 3.5% y/y: minister

Russia pumped 211m tons of oil in 5m'25, down 3.5% y/y: minister

Russia's oil production has shown a significant decline in the first five months of 2025, down by 3.5% year-over-year (y/y), according to a recent statement by the Russian Minister of Energy. This decrease comes amidst growing geopolitical tensions and potential tariff threats from the United States.

The Russian Minister of Energy reported that the country's oil production in the first five months of 2025 amounted to 211 million tons, marking a 3.5% decrease from the same period last year. This reduction is attributed to various factors, including the ongoing conflict in Ukraine and the potential impact of US tariffs on countries importing Russian crude oil.

The United States has been increasingly vocal about its intentions to impose tariffs on nations that continue to purchase Russian energy. In March, US President Donald Trump warned of secondary sanctions against Russia, including a potential 25% to 50% tariff on countries buying Russian oil [1]. This threat has not only raised concerns within Russia but has also prompted a response from major importers like India.

India, which has traditionally been one of Russia's largest oil buyers, has been closely monitoring these developments. The Indian government has been actively engaging with the US to address its concerns and mitigate potential impacts on its energy imports. Despite the threat of US tariffs, India has continued to import Russian oil, with the country accounting for 35.14% of India's crude imports by value in FY25 [1].

The global oil market has also been influenced by these geopolitical developments. Oil prices have been volatile, with traders awaiting further details on Trump's statements on Russia. The energy major BP, for instance, has warned that lower oil and gas sales could drag on its results, but expects upstream production to rise quarter-on-quarter [2].

The International Energy Agency (IEA) has also indicated that global oil supply is set to rise faster than demand this year, potentially easing some of the market tensions [2]. However, seasonal factors are currently tightening the market in the short term.

In conclusion, the decline in Russia's oil production and the potential impact of US tariffs on energy imports are significant factors shaping the global energy landscape. As geopolitical tensions persist, the energy market will continue to be influenced by these dynamics, with implications for both producers and consumers alike.

References:
[1] https://www.business-standard.com/economy/news/trump-tariff-threat-us-russia-india-energy-125071001159_1.html
[2] https://www.morningstar.com/news/dow-jones/202507142434/dow-jones-top-energy-headlines-at-7-am-et-oil-rises-as-traders-await-trumps-statement-on-russia-bp