Russian oil output unchanged in April, misses global deal target

Russian oil output stood at 10.97 million barrels per day (bpd) in April, unchanged from an 11-month high in March and above a target set by a deal with OPEC on curbing output, Energy Ministry data showed on Wednesday.

Pump jacks are seen at the Ashalchinskoye oil field owned by Russia’s oil producer Tatneft near Almetyevsk, in the Republic of Tatarstan, Russia, July 27, 2017. REUTERS/Sergei Karpukhin

Russia agreed to cut oil production by 300,000 bpd from the 11.247 million bpd level it reached in October 2016, the baseline for reductions under a pact with the Organization of the Petroleum Exporting Countries and other producers. The deal is valid until the end of the year. OPEC and some non-OPEC countries, including Russia, will gather in Vienna in June to review the deal.

Russian Energy Minister Alexander Novak has said a joint organization for cooperation between OPEC and non-OPEC countries may be set up once the oil deal expires at the end of 2018. Russia’s total output for April reached 44.878 million tonnes versus 46.39 million tonnes in March.

Output by Rosneft (ROSN.MM), the biggest producer among listed firms, edged up by 0.1 percent from March, while production at Gazprom Neft (SIBN.MM), Russia’s fastest growing oil producer, rose by 0.9 percent. The gains were offset by smaller producers, whose combined output fell by 0.9 percent. Russian oil pipeline exports in April rose to 4.367 million bpd from 4.163 million bpd in March. Gas production was at 61.86 billion cubic meters (bcm) last month, or 2.06 bcm a day, versus 65.68 bcm in March.

Sources and photo-credits: Reuters