Russia is estimated to have increased its crude oil production by 0.2% in February compared to January, but is still likely to be more than 130,000 barrels per day (bpd) below its OPEC + quota, according to estimates. of Bloomberg for Russian production data.
February was the third month in a row that Russia failed to meet its OPEC + quota after falling behind in production levels in December 2021, for the first time since the April 2020 pact, which ended the one-month price war with Saudi Arabia, when COVID crippled global demand.
Russia’s production difficulties relative to its quota are contributing to an already tight oil market, which has risen above $ 110 a barrel since Russia invaded Ukraine and traders and buyers began to avoid Russian cargo, even if Russian oil did not. is currently subject to sanctions.
Russia does not distinguish between crude oil production and condensate production in its official production data. After years of debate within the OPEC + group, Russia has won an exception for not considering condensate extraction as part of an agreement to reduce production.
According to the Russian Ministry of Energy in tons converted into barrels, crude oil production in Russia was about 10.095 million barrels per day in February, which is 132,000 barrels per day below its quota for the month, according to Bloomberg estimates.
Under the OPEC + agreement, Russia’s quota for February was 10.227 million barrels per day, the same as Saudi Arabia’s. The two OPEC + leaders have the right to add about 100,000 barrels per day to their production each month as part of monthly increases of 400,000 barrels per day.
OPEC + met on Wednesday and did not deviate from its plan to add 400,000 barrels a day to quotas each month, largely as expected, despite rising oil prices amid Russia’s invasion of Ukraine.
By Charles Kennedy for Oilprice.com
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