Russian October Oil Production Rises Following OPEC+ Quota Hike
Russian October Oil Production Rises Following OPEC+ Quota Hike
(Bloomberg) --
Russia’s oil output increased in October for a second straight month as companies open the taps under the OPEC+ agreement to raise output.
The nation produced 45.86 million tons of crude oil and condensate last month, according to data from the Energy Ministry’s CDU-TEK unit. That equals 10.843 million barrels a day, based on a 7.33 barrel-per-ton conversion ratio, and is 1.1% higher than September.
Russia has the right to increase its crude-only production by some 100,000 barrels a day each month starting August. That’s a quarter of the total crude supply hikes targeted by the Organization of Petroleum Exporting Countries and its allies.
The increases are set to continue until all of the production curbs that were implemented during the depths of the pandemic are rolled back. The alliance will meet Nov. 4 amid mounting pressure from oil consumers to increase output faster to stem price growth.
As CDU-TEK data doesn’t provide a breakdown between crude and condensate, which is excluded from the OPEC+ agreement, it’s difficult to assess Russia’s compliance with the deal. If Russia’s condensate output was the same as in September - some 910,000 barrels a day, then nation’s daily crude-only production waround 9.93 million barrels, about 120,000 barrels above its quota for October.
Russia’s adherence to the OPEC+ deal remained at 92% in September, which, together with Iraq, was the lowest rate among major producers in the alliance, the International Energy Agency said in its latest monthly report.
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