Russia’s 2019 oil output will be in line with commitments under global deal -energy minister
Russian oil production is expected to total 556-557 million tonnes this year, or 11.17-11.19 million barrels per day (bpd), Energy Minister Alexander Novak said in a preliminary estimate.
That would be in line with Moscow’s commitments under a global deal between oil producers to cut output.
“We have another half a year to go so this is hard to predict the exact figure… Will see how the things will develop,” Novak told reporters during a visit to Turkey on Friday.
Under the global deal, Russia committed to cut output by 228,000 bpd from the 11.41 million bpd pumped in October 2018.
Novak said earlier on Friday that Moscow is committed to keeping its monthly average oil production in line with the global agreement, but the level may fluctuate in the course of a month due to various factors.
Earlier this month, OPEC and non-OPEC nations, led by Saudi Arabia and Russia, agreed to extend the current oil production cut deal to until March 2020, seeking to prop up the price of crude as the global economy weakens and U.S. production soars.
This week, Novak said the global oil market was fairly balanced and volatility was not high.
Russian oil production fell close to a three-year low in early July as output was undermined by a row between Russian oil pipeline monopoly Transneft and the country’s biggest producer Rosneft.
Back then, Transneft curbed oil intake from Yuganskneftegaz, Rosneft’s main upstream unit, hurting production that has already been depressed by an oil contamination crisis.
Two industry sources familiar with the data told Reuters on Friday that Russian production rose to an average of 11.099 million bpd in the period July 1-25.
That was up from 11.05 million bpd for July 1-21, but it was still below June’s average of 11.15 million bpd.
Oil production by Yuganskneftegas averaged 1.23 million bpd over July 1-25, according to one of the sources, down from 1.34 million bpd on average in June. Novak said on Friday there were no oil intake limits for Yugansk to the Transneft system.
The Russian energy ministry did not immediately respond when asked by Reuters to comment on the output data, nor did Rosneft.
Source: Reuters (Reporting by Olesya Astakhova and Gleb Gorodyankin; Writing by Katya Golubkova; Editing by Edmund Blair and Susan Fenton)