Russian oil output down in October, but misses OPEC deal target

Russian oil output down in October, but misses OPEC deal target
# 02 November 2019 14:16 (UTC +04:00)

Russia lowered its oil output to 11.23 million barrels per day (bpd) last month from 11.25 million bpd in September, missing again its obligations under a global pact to curb production, energy ministry data showed on Saturday, APA reports citing Reuters.

The Organization of the Petroleum Exporting Countries, Russia and other producers – a group known as OPEC+ – have since January implemented a deal to cut oil output by 1.2 million barrels per day to support the market.

According to Reuters calculations, which use a tonnes/barrel ratio of 7.33, the pact indicates Russia should cap output at around 11.17-11.18 million bpd.

Russia’s largest oil producer Rosneft <ROSN.MM> was the biggest contributor to the cut last month, lowering its output by almost 1% from September.

Output at Gazprom Neft <SIBN.MM>, Russia’s fastest growing oil producer by output, declined last month by 2.5% following a slowdown at its main production unit, Gazprom Neft-Khantos in West Siberia.

In tonnes, oil output reached 47.49 million versus 46.043 million in September, which was a day shorter.

Russian oil pipeline exports in October rose to 4.88 million bpd from 4.623 million bpd in September.

The country’s production has been recovering following the contaminated oil crisis in the Druzhba pipeline, its exporting network, which emerged in late April.

OPEC oil output bounced in October from an eight-year low as a rapid recovery in Saudi Arabian production from attacks on oil plants more than offset losses in Ecuador and voluntary curbs under the supply pact.

The agreement runs to the end of March 2020 and producers meet to review policy on Dec. 5-6. Russia has said OPEC and its oil-exporting allies would factor in the slowdown of U.S. oil output growth when they meet.

Natural gas production in Russia rose to 61.97 billion cubic metres (bcm) last month, or 2 bcm a day, versus 55.94 bcm in September.