Russia Says Its Cutting Oil Production by More than Agreed

Russia’s oil production on May 1 was 300,790 barrels per day (bpd) below the level in October, meaning it has cut output by more than was demanded under a pact between OPEC and other producers, Russia’s Energy Ministry said on Wednesday.

The Organization of the Petroleum Exporting Countries, along with Russia and other non-OPEC producers, pledged to cut output by 1.8 million bpd in the first half of 2017.

Under the deal, Russia pledged to reduce its average daily production gradually by 300,000 barrels to 10.947 million bpd from the October level of 11.247 million bpd.

With global crude inventories still bulging, investors are now focussed on whether OPEC and others will agree to extend the cuts to the second half of the year. The issue will be discussed by the group of producers at an OPEC meeting on May 25.

Russian Energy Minister Alexander Novak has said he would meet managers of key Russian oil producer before the OPEC event to discuss extending the cuts. Industry sources say such a meeting has yet to take place.

Novak declined say on Friday on whether Russia would support an extension to the pact. Russia’s Deputy Prime Minister Arkady Dvorkovich also declined to comment when asked on Wednesday.

via Reuters

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