OPEC Production Cuts: Is Russia Complying?

Authored by Tsvetana Paraskova via OilPrice.com,

Russia’s oil production held onto an 11-month high in April, flat compared to March and above its quota under the OPEC/non-OPEC deal for a second consecutive month, according to data by Russia’s Energy Ministry.

Russia pumped a total of 10.97 million bpd of oil in April, unchanged from March, and slightly above its quota under the production cut deal, according to energy ministry data, as carried by Reuters.

Russia’s pledge in the OPEC/non-OPEC deal is to shave off 300,000 bpd from its October 2016 level, which was the country’s highest monthly production in almost 30 years - 11.247 million bpd.

Last month, production at the larger Russian companies increased, while a decline at the smaller firms offset that growth. Production at Rosneft, the largest Russian oil company, inched up by 0.1 percent in April over March, while Gazprom Neft—which has an ambitious production growth plan—saw its oil production increase by 0.9 percent month on month. The combined production of the smaller oil companies decreased by 0.9 percent last month, offsetting the production gains at the bigger producers.

After three months of steady output, Russia’s crude oil production increased in March to 10.97 million bpd, the highest level since April 2017, as the top two Russian companies - Rosneft and Lukoil - boosted their production.

Russia is leading the non-OPEC group of oil producers part of the pact with OPEC to cut production in order to draw down inventories and boost oil prices. Analysts and official figures are already estimating that global oil stocks in developed economies are very close to or already within the five-year average—OPEC’s metric for the deal’s success.

Nevertheless, OPEC’s leader Saudi Arabia insists that there is more work to be done and the cuts should continue by the end of this year, as planned. Russia is more careful in comments, although it has repeatedly said that it is committed to the deal. Last month, Russia’s Energy Minister Alexander Novak said that at the June meeting, OPEC and allies could discuss ‘easing the cuts’ until the end of the year. 

Comments

BritBob Thu, 05/03/2018 - 14:53 Permalink

Falklands Oil - Worth a Punt?

Falkland Oil Project Eyes Green Light This Year as Prices Rise - 11 Jan 2018

“The project of course is looking a lot better at $68 a barrel,” Tony Durrant, chief executive officer of Premier Oil, which holds 60 percent of Sea Lion, said in an interview on Thursday. “It’s a project that’s very sensitive to oil prices.” (Bloomberg 11 Jan 2018)

What about Argentina? And what does the law say about the ownership of natural resources?

Argentina's Continental Shelf Claims and The UN CLCA Commission (1 page):-

https://www.academia.edu/33898951/Argentinas_Continental_Shelf_Claims_-The_UN_CLCS_Commission

 

directaction HominyTwin Thu, 05/03/2018 - 15:11 Permalink

Saudi Arabia is producing oil at a flat out maximum possible rate.

Yet their oil production is slowly declining.

And Saudi oil consumption is steadily increasing. 

They will claim their compliance adheres to the agreement, but really, they have no choice because Saudi Arabis has entered a terminal decline in its oil production. 

In reply to by HominyTwin

Banjo cheka Thu, 05/03/2018 - 17:10 Permalink

You'd be wrong to think oil wells don't peak in production and decline. Are you following the recent industry trends in oil discovery. Just because fake money is artificially keeping the Frackers alive to sustain "the recovery" since 2008 does not mean the piper will not be paid.

Hang tight we are either close to the cliff edge or slightly airborne. Sure it might be another 10-15 years but that time goes fast.

If there were so much oil why would you even bother with Fracking in the first place just drill that nice energy dense light sweet crude? Fracking is the equivalent of cracking open the piggy bank for dimes and quarters after you've spent the notes in your wallet.

 

In reply to by cheka

FBaggins francis scott … Thu, 05/03/2018 - 21:10 Permalink

The tables now appear to  be turning. The US-UK-Israeli-bankster-oilster Axis bled SA forcing it to produce  oil at cost or even below cost in their effort to bankrupt Russia. Russia has found other markets and probably has improved its production methods thanks to the US sanctions. SA meanwhile is trying to climb out of the hole.  All the Axis can think of doing is using its military to conquer the Levant to take over oil  fields and secure resources and the US petrodollar, and also to strike at Russia hoping to some day to  control  its oil and other resources as well.  Meanwhile world business goes on and and the Axis will continue to lose one market after another, because of their corrupt and plundering ways which the rest of the world has becoming very fed up with.     

In reply to by francis scott …

Jack Oliver Thu, 05/03/2018 - 14:57 Permalink

Russia is likely complying - Russian oil production would not be in breach of the OPEC agreement !! 

However - Russia is doing an oil for goods swap with Iran ( because the FUCKING Zio/US has limited Iran’s oil trade options ) 

Of course Russia is then ‘on-selling’ Iranian oil !! 

I think it is very FUCKING clever actually and bails out their ally !! 

CatInTheHat Jack Oliver Thu, 05/03/2018 - 21:11 Permalink

True dat!

AND, drop the dollar and get bombed some more!!

China is the largest consumer of oil and Russia has cut down outflow to Europe while increasing to CHINA, AND they can trade in their own currency! I've been wondering when Putin would put more energy into a pivot to Asia, well here ya go!

Less outflow to Europe...perhaps Putin accepts that the west isn't really a 'partner' in anything ..

In reply to by Jack Oliver

falconflight Thu, 05/03/2018 - 17:05 Permalink

Russia is more careful in comments, although it has repeatedly said that it is committed to the deal.   Yeah those Slavs are famous for their slippery tongue and a stab to the heart.  They're on borrowed time anyway.  Their life expectancy is at least 10 years less than the rest of the developed world.