Russia's Oil Production Nears Record High
Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ andâ¦
Trending DiscussionsRussiaâs Oil Production Nears Record High
Russiaâs oil production in August was virtually flat compared to July as Moscow kept output at near post-Soviet record, after having reversed most of its production cuts under the OPEC+ deal the previous month.
Russiaâs oil production in August stood at 11.21 million bpd, according to data by its energy ministry emailed to Bloomberg over the weekend.
After the OPEC meeting in June decided to ease compliance rates, Russia opened the spigots in July and pumped at its highest level since the OPEC/non-OPEC agreement came into force in January 2017. At 11.215 million bpd, Russiaâs oil production in July was very close to the post-Soviet record-high of October 2016, the month used as a baseline for the production cuts.
Russiaâs oil production in July had surged by 148,000 bpd from June, according to government data.
Before the decision to reverse some of the cuts â"or as OPEC and its Moscow-led allies put it, to stick to 100-percent compliance ratesâ"Russiaâs pledge in the pact was to cut 300,000 bpd of its oil production from the October 2016 level, which was the countryâs highest monthly production in almost 30 yearsâ"11.247 million bpd.
Production in July was just 40,540 bpd lower than the October 2016 level.
In August, production was little changed from July, but Russian producers benefited from the record level of oil in rubles after the Russian currency significantly weakened due to new U.S. sanctions and expectations for more sanctions coming, and a sell-off across the emerging markets and currencies after the Turkish crisis. Related: Saudi Oil Income Could Reach $161B This Year
Last month, all major Russian oil firmsâ"including the two biggest companies Rosneft and Lukoilâ"increased their production compared to July, but the rise was offset by declines of smaller producers and foreign comp any-led projects under production sharing agreements (PSA) such as the ExxonMobil-operated Sakhalin-1.
Saudi Arabia, Russiaâs key partner in the production cuts pact, will report to OPEC that its crude oil production rose to 10.424 million bpd in August, S&P Global Platts reported on Friday, quoting an OPEC source.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
- Analysts: Iran May Use Secret Oil Shipments To Skirt U.S. Sanctions
- Can We Expect An Oil Price Spike In November?
- The Biggest Threat To The Oil And Gas Industry
Back to homepage
The most vital industry information will soon be < br/>right at your fingertips
Join the world's largest community dedicated entirely to energy professionals and enthusiasts
Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ andâ¦More Info
Russiaâs Oil Companies Thrive Amid Sanctions
Chinaâs Natural Gas Imports Soar Despite Domestic Output Growth
The Bearish Case For OilLeave a comment
Source: Google News Russia | Netizen 24 Russia