Russian oil production cuts flatline in February

Russian oil production has dropped slightly since Moscow agreed to participate in the OPEC supply cut deal, however, not as much as pledged.  Bashneft photo.

Russian oil production cuts amount to 100,000 b/d, same as January

Russian oil production cuts have not stalled at 100,000 b/d, a third of levels agreed to late last year by Moscow in the OPEC supply cut pact, according to Energy Ministry data.

On Thursday, the Energy Ministry reported Russia’s oil production was 11.11 million b/d in February, mirroring January’s report.

As part of the OPEC supply cut pact, Russia had pledged to cut 300,000 bpd with 200,000 bpd of reductions in the first quarter.  A baseline taken in October of last year was 11.2 million b/d was the starting point for the agreement.

According to Reuters’ calculations, Russia’s cut from the October baseline level shows Moscow is at only 33 per cent compliance with the agreement.  OPEC is reporting its members are 94 per cent compliant with the deal, mainly due to larger-than-expected cuts made by Saudi Arabia.

Three top Russian oil producers, Rosneft, Lukoil and Surgutneftegas, reduced output, however, Gazprom Neft upped its production by 1.4 per cent.  Small Russian producers also increased output by 0.1 per cent.