Why Russia is unable to increase production cuts
Russia's crude oil production accounted for about 11.24 bpd in the first 18 days of April, Reuters reported Friday, referring to an industry source. This means that the leader of the OPEC + part of the OPEC + agreement is not yet in line with the obligatory production reductions.
As part of the OPEC + production sections between January and June, Russia's lion's share of The Non-OPEC cuts and pledged to reduce production by 230,000 bpd from October's post-Soviet record level of 11,421 million bpd, to 11,191 million bpd. .
Moscow has repeatedly said that due to weather and geological conditions in the cold Russian winter, it cannot cut oil production too fast.
In March, Russia continued to gradually reduce its oil production, but it lacked its production reduction target under the agreement, according to data from the Russian Energy Ministry.
As at the end of March, Russia reduced its oil production by 225,000 bpd compared to October, except for production from production sharing agreements, while production was reduced by 1[ads1]90,000 bpd from October levels, considering the PSA, Russian Minister of Justice Alexander Novak said. in a statement from the Ministry of Energy.
Russian production in March stood at 11,298 million bpd, according to data from the Energy Service in tonnes, calculated in millions of bpd by Reuters using a ratio of 7.33 barrels / tonne.
In early March, Novak said Russia would accelerate its oil production cut and plan to reach its share of the OPEC / non-OPEC reduction by the end of March or early April. Related: Great interest in oil and gas defies this "Millenial" Investment Trend
Over the past few weeks, reports have intensified that Russia may not be happy to extend the production agreement with OPEC after it expires in June.
Meanwhile, Moscow is planning its National Treasury for US $ 3.3 billion (210 billion rubles) to pay the oil companies under a deal to keep gasoline and diesel prices low, Alexey Sazanov, head of the Russian Treasury Department's franchise said Friday.
In November 2018, after oil prices reached a four-year high last month, Russia's government and domestic oil companies and refineries agreed to freeze wholesale prices to stop prices from moving up – a politically sensitive issue for Russian President Vladimir Putin, who had seen his degree of approval fall to low in 2012, with an increase in the retirement age and higher prices for the pump, which seeps through inflation.
By Tsvetana Paraskova for Oilprice.com
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