Russia’s Oil Production to Be in Line with OPEC Deal This Year: Novak

Russia’s oil production in 2019 will be in line with the country’s commitments under a global deal with OPEC and non-OPEC oil producers to cut output, Energy Minister Alexander Novak said in a preliminary estimate, according to Reuters

Oil production in Russia is expected to total 556-557 million tons this year, or 11.17-11.19 million barrels per day (bpd), Novak said. 

 “We have another half a year to go so this is hard to predict the exact figure… Will see how the things will develop,” he told reporters during a visit to Turkey on Friday.

Under the global deal, Russia committed to cut output by 228,000 bpd from the 11.41 million bpd pumped in October 2018.

Novak said earlier on Friday that Moscow is committed to keeping its monthly average oil production in line with the global agreement, but the level may fluctuate in the course of a month due to various factors.

Earlier this month, OPEC and non-OPEC nations, led by Saudi Arabia and Russia, agreed to extend the current oil production cut deal to until March 2020, seeking to prop up the price of crude as the global economy weakens and U.S. production soars.

Russian oil production fell close to a three-year low in early July as output was undermined by a row between Russian oil pipeline monopoly Transneft and the country’s biggest producer Rosneft.

Back then, Transneft curbed oil intake from Yuganskneftegaz, Rosneft’s main upstream unit, hurting production that has already been depressed by an oil contamination crisis.