Russia to cut down on its oil production in January by almost 100,000 barrels per day (bpd) as compared to December after joint agreement between other OPEC nations. As per the agreement, all OPEC and associate countries will downsize the production of crude oil.
The country’s oil and gas condensate collectively recorded an average output of over 11 Million barrels per day in the time span between 1st and 8th January 2017, according to some industry insiders. The figures was significantly lower as compared to last and previous months, attributing the initiative taken to reduce oil outputs as discussed with the Organization of the Petroleum Exporting Countries. However, companies that are involved in this agreement are yet to be identified. The cut came amidst a sluggish spell in the country particularly in its major oil production province of western Siberia.
Russian authorities stated the targeted level of the country’s oil output was below 11 million Bpd after the production cut pact. The authorities also believe that the country aims to cut oil production by almost 200,000 bpd in the first quarter and further reach increase cuts to 300,000 bpd in the following months as to abide with the OPEC agreement. Few other nations including Saudi Arabia, which one of the world’s top oil exporter and a major OPEC member have also downsized their oil output.
In January, Saudi Arabia has reduced output by nearly 486,000 bpd to 10.058 million bpd, completely complying with the OPEC’s agreement to reduce oil production as per industry insiders. However, some of the experts still believe that Russia’s overall oil output to expand in 2017 and reach a new record high owing to activation of new fields. Experts also believe that country’s crude and condensate output will decline gradually from the impressive Sep-Dec 2016 production levels, to reach the projected 300,000 bpd output reduction by the first half of 2017. Though, the country will move towards a Year-on-Year growth in oil output, averaging 11.14 million bpd.
Summary: As per OPEC Agreement, Russian initiates cut on crude oil output