Russia Misses OPEC+ Oil Output Target Again in October

Russia produced less oil in October, lowering its output to 11.23 million barrels per day (bpd) last month from 11.25 million bpd in September, as it once again missed its obligations under a global pact to curb production, Reuters reports.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers – a group known as OPEC+ – have since January implemented a deal to cut oil output by 1.2 million barrels per day to support the market. According to Reuters calculations, which use a tonnes/barrel ratio of 7.33, the pact indicates Russia should cap output at around 11.17-11.18 million bpd.

The agreement runs to the end of March 2020 and producers meet to review policy on Dec. 5-6. Russia has said OPEC and its oil-exporting allies would factor in the slowdown of U.S. oil output growth when they meet.

Energy ministry data showed on Saturday that Russia’s largest oil producer Rosneft was the biggest contributor to the cut last month, lowering its output by almost 1% from September.

Output at Gazprom Neft, Russia’s fastest-growing oil producer by output, declined last month by 2.5% following a slowdown at its main production unit, Gazprom Neft-Khantos in West Siberia.

In tons, oil output reached 47.49 million versus 46.043 million in September, which was a day shorter. Russian oil pipeline exports in October rose to 4.88 million bpd from 4.623 million bpd in September.

The country’s production has been recovering following the contaminated oil crisis in the Druzhba pipeline, its exporting network, which emerged in late April.