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Russia's crude production at 11.065mn b/d in January

17 Feb 2017, 7.23 pm GMT

Russia's crude production at 11.065mn b/d in January

London, 2 February (Argus) — Russia produced 11.065mn b/d of crude in January, down 119,000 b/d from October levels but still 1.8pc higher compared with January last year, according to preliminary data from the country's energy ministry released today.

The January figure is lower than the initial plan for the month, which envisaged total output of 11.210mn b/d. All of Russia's leading producers reduced overall output on October levels, but production from greenfield projects has risen.

Russia's oil minister Alexander Novak said yesterday the full-month cut was "more than two times greater than the initial plans of the companies [in January]." Initially, Novak had said Russian production would only fall by 50,000 b/d in January but he doubled this forecast after a meeting of the committee monitoring the implementation of the output agreement in Vienna.

He yesterday pegged the full month decline at 117,000 b/d, as the country began to implement a first-half 2017 cut of 300,000 b/d pledged in an agreement with Opec and a group of non-Opec countries to take 1.8mn b/d out of the market.

Russia agreed on 10 December to cut by 300,000 b/d — or 2.7pc — in the first half of 2017 from October 2016's post-Soviet record production, although Novak later said that output will be reduced by 200,000 b/d in the first quarter to be followed by a reduction to 300,000 b/d until the end of the first half.

Novak said yesterday the effect of agreements on prices was already visible, with levels stabilising at $55/bl, while price volatility has decreased.

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