Media ININ Economy We Trust
Media IN MOSCOW 3rd-June-2019
The Energy Ministry data showed on Sunday that Russian oil output fell to 11.11 million barrels per day (bpd) in May, its the lowest level since June 2018, from 11.23 million bpd in April. The production fall resulted mainly from the closure due to oil contamination of Russia’s Druzhba pipeline, which usually ships 1 million bpd, or 1 percent of global oil demand.
As a result, Russian oil production during May fell by more than stipulated in a global deal with the Organization of the Petroleum Exporting Countries (OPEC).
The Energy Ministry data showed Russian oil pipeline exports in May fell to 4.209 million bpd, from 4.494 million bpd in April, as supplies via the Druzhba pipeline almost dried up, while seaborne exports jumped by 11.5 percent.
Russia expects to clean up the pipeline, which was built in the 1960s and carries Russian oil to Europe, including Germany, Hungary, Poland and Slovakia, within six to eight months. June 2018 production was 11.06 million bpd.
In tonnes, oil output reached 47.004 million in May versus 45.975 million in April, which is one day shorter than May.
Russia’s largest oil producer Rosneft ROSN.MM accounted for most of the cuts, with a month-on-month reduction of 2.9 percent in May, while domestic output at Russia’s No.2 oil producer LukoilLKOH.MM edged up 0.7 percent last and Gazprom Neft SIBN.MM boosted its output by 4.7 percent.
Both Lukoil and Gazprom Neft have their own exporting terminals in the Arctic.
BELOW QUOTAS
OPEC and other large oil-producing countries led by Russia agreed to curb output by a combined 1.2 million bpd for six months from Jan. 1, in order to balance the global oil market.
Of this, Russia pledged to cut its production by 228,000 bpd from the deal baseline of the October 2018 level, to 11.18 million bpd.
OPEC and Russia are excepted to gather in Vienna later this month or in early July to discuss what to do in the second half of the year.
Top oil exporter Saudi Arabia has raised production in May, but not enough to compensate for lower Iranian exports that collapsed after the United States tightened the screw on Tehran.
