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Russia to cut crude production in June despite OPEC+ output recovery, says statistics

According to the calculations provided by the IEA, Russia produced 1.28 mln barrels per day of gas condensate and other liquid hydrocarbons in April

MOSCOW, June 15. /TASS/. Russia’s average daily oil and gas condensate production amounted to 1.419 mln tonnes in the period from June 1 to 14, 2021, down by 0.6% compared with May when the average daily crude oil output totaled 1.427 mln tonnes, according to the data released by the Central Dispatching Department of Fuel Energy Complex obtained by TASS.

Russia participates in the OPEC+ crude production cap agreement. However, in January, it was given the right to boost output within a gradual easing of restrictions. For example, the agreements enabled Russia to increase crude production by 125,000 barrels per day in January, and by another 130,000 barrels per day in February, March, and April. In May-July, Russia can also increase production by another 38,000 barrels per day each month.

However, starting March, the country actively restored oil production, whereas in May, the growth stopped at 1.427 mln tonnes per day on average. All in all, Russia’s average daily oil output has grown by around 3.5% since the beginning of January, when average production amounted to 1.371 mln tonnes. TASS has not received a commentary from the Energy Ministry on the matter yet.

In June, in accordance with the deal, Russia was to produce no more than 9.457 mln barrels of oil per day (with gas condensate not included) compared to 9.418 mln barrels per day in May 2021. In July, Russia will be able to produce 9.495 mln barrels per day.

If the Russian oil production statistics is recalculated in barrels at the coefficient used for Russia’s Urals oil (7.33), the country’s average daily output as of the middle of June amounted to 10.4 mln barrels compared with 10.05 mln barrels in December 2020. Meanwhile, gas condensate is not included in the OPEC+ deal, whereas Russia’s statistics does not provide separate figures for oil and condensate production.

According to the calculations provided by the International Energy Agency (IEA), Russia produced 1.28 mln barrels per day of gas condensate and other liquid hydrocarbons in April.

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