Russia is slowly decreasing its oil production following the OPEC+ deal and is on track to reach approximately the fifth of the way towards its pledged cut on January, according to Bloomberg. Russian data reveal that the nation’s output has already decreased by more than 30.000 barrels per day, similar to October’s levels, as reported by Alexander Novak, Energy Minister.
He continued stating that
The companies have said they can decrease total production by 50,000 barrels per day in January.
In addition, Russia has concluded to an agreement with the Organization of Petroleum Exporting Countries to steadily pass a cut of 228.000 barrels per day by the end of the first quarter, in comparison to October’s production of 11.418 million bpd.
Moreover, Russia opened the taps prior to the restrictions, reaching a post-Soviet record of 11.45 million barrels per day in December. Meaning that the month-to-month output reduction will be sharpen.
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In the OPEC+ agreement, Russia has the possibility to cut its oil output gradually as the harsh climate and complex geology of Siberia, its main oil province, prevent swift field shutdowns.
On the contrary, Saudi Arabia reported that it has already fully implemented it production cut and has dive deeper, pumping 10.2 million barrels per day.
Bloomberg supports that Russia’s decreases are plain in comparison to its partners’ cuts.
Concluding, in December OPEC production plunged by 530,000 barrels a day, the most in almost two years. The OPEC+ alliance agreed to trim output by a total 1.2 million barrels a day in the first half of 2019.
