Russia’s combined crude oil and condensate production was around 10.46 million barrels per day (bpd) in July, up 0.3% from June, according to Bloomberg estimates based on preliminary data from the Russian Energy Ministry.
In May and June, Russian production of crude and condensate was down despite the higher quota available to the leader of the non-OPEC group of the OPEC + alliance. According to the International Energy Agency (IEA), as cited by Bloomberg, Russian crude oil production was down in June due to scheduled talks.
It is difficult to assess Russia’s compliance with the OPEC + deal because its energy ministry does not break down crude oil and condensate production. Russia has obtained an exemption not to consider its condensate production under the production reduction agreement.
Bloomberg estimates that if Russia’s condensate production in July was the same as in June, at around 900,000 b / d, then its crude oil production should have been 9.56 million b / d. , above its quota of 9.495 million bpd for July.
Russia’s compliance with the OPEC + deal will be around 100% in July, Deputy Prime Minister and chief oil negotiator Alexander Novak told reporters on Friday.
Russia can increase its oil production in August by 100,000 bpd, within the parameters of the OPEC + deal agreed in July, Novak added.
On July 18, the OPEC + group decided it would start putting 400,000 bpd back on the market each month from August until it unwinds all the 5.8m bpd cuts. .
While Russia saw its oil production rise 0.3% month-over-month in July, OPEC oil production reportedly jumped 610,000 bpd to 26.72 last month. million bpd, the highest since April 2020, according to Reuters monthly survey.
By Tsvetana Paraskova for OilUSD
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