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world’s combined oil output in July contracted by 9.98mn barrels a day as compared with July 2019 to 88.75mn barrels, but the output is still growing faster than demand for oil. Commercial reserves of oil and oil products in countries of the Organization for Economic Cooperation and Development (OECD) overshoot their 5-year average figures by 291.2mn barrels in June, growing for the fourth month in a row and adding 24.3mn barrels to 3240mn barrels, OPEC said. The organization worsened its forecast of global demand for oil by 100,000 barrels, and it now expects demand for oil to fall 9.1mn barrels a day this year to 90.6mn barrels. But in 2021, it should recover by a record amount of 7mn barrels a day. OPEC also raised the forecast for the world’s combined oil production excluding OPEC, it now expects it to fall by 3.03mn barrels a day in 2020 to 62.11mn barrels a day instead of falling 2.36mn barrels a day. In 2021, it expects the oil output outside OPEC to rise by 980,000 barrels a day to 63.1mn barrels.
European prices for natural gas would drop by about one quarter if the Nord Stream 2 pipeline connecting Russia to Germany were completed, the consulting firm Wood Mackenzie said in a report on Friday, Sputnik News reported. “If Nord Stream 2 remains unfinished, European benchmark TTF gas is expected to average about $4 permn British Thermal Units next year. But if the project can be completed as its backers hope early in 2021, then the average TTF price that year could drop to about $3, we estimate,” the report said. TTF, or Title Transfer Facility, refers to a benchmark price for gas in Europe based on a virtual trading exchange in the Netherlands.
9.1.2 Automotive sector news
Russia’s car exports almost doubled on the month in July to 5,700 vehicles and to US $105.5mn in monetary terms in June, the Federal Customs Service said on August 10.
Imports of cars rose by 52.3% to 16,800 worth $321mn, a 36.7% growth.
In January–June, car exports fell by 44% on the year to 30,600 worth $461mn, a 39.7% decrease. Car imports fell by 34.5% to 91,400 and 43% to $2.178bn.
Russia’s truck imports more than doubled to 1,800 units and rose 22% to $29.8mn in June. They fell by 38.8% on the year to 8,400 worth $468.5mn, a 54.6% fall, in January–June.
Truck exports fell by 59.4% to 900 worth $56.7mn, a 42.7% decrease, in June. They fell by 12.2% to 5,700 worth $147.8mn, a 5% drop, in January–June.
Russia’s car market is slowly starting to recover as punters who put off big-ticket purchases are slowly going back into the market as the coronacrisis restrictions are eased.
Russia's car and LCV sales (excluding Mercedes and BMW) increased 6.8% y/y to 141,924 units in July, which reduced the YTD decline to 19% y/y, with 742,681 units sold during the period, according to the latest data provided by the Association of European Businesses (AEB).
“The rebound was driven by deferred demand as well as the effect of government support. The recent weakening of the ruble might also have pulled
81 RUSSIA Country Report September 2020 www.intellinews.com