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Update on Russia's GDP

Oil
 

Russian GDP grew only 0.9% year-on-year during the first quarter, and actually declined frm the previous quarter.

The slowdown, anticipated earlier this year with the Russian authorities cutting their long-term economic outlook, has apparently started biting into oil demand as well. Russian gasoline demand has declined slightly so far this year due to the sluggish economic environment. Another indicator of this situation was car sales, which declined by 13% in May from a year ago and posted an overall contraction of 6% during the first 5 months of the year.

A similar situation could be observed in the region's other countries as well. In Azerbaijan, demand for gasoline is growing by less than 1% year-on-year, while consumption has halved in the Ukraine due to the recent crisis. Demand in Baltic countries with relatively small volumes is either flat (Estonia), contracting (Latvia) or growing only slowly (Lithuania).

 

Further information on FGE's FSU Oil Monthly report can be found online by clicking on the link below.

 

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