Page 124 - RusRPTJan21

9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1a​ Oil & gas sector results
The average Urals oil price plummeted by 34.38% year-on-year in 2020 to $41.73 per barrel, the Russian Ministry of Finance says.
Russia's production of oil and gas condensate dropped by 8.6% to 512,680,000 tonnes in 2020​, according to data from the Central Dispatching Department of the Fuel and Energy Sector. Russia is a member of the OPEC+ agreement on oil output cut aimed at improving the situation on the global oil market. Russia's oil exports fell by 12.7% to 232,500,000 tonnes in 2020, while domestic oil supply was down by 5.2% to 274,900,000 tonnes. The country's gasoline production dropped by 4.5% to 38,412,000 in 2020 amid a decline in global energy demand due to the coronavirus pandemic.
Volatility in the oil market in 2021 will decrease and oil demand will grow by 3-5mn barrels per day (bpd). ​Nevertheless, it will not reach the pre-crisis level, which was higher by 6-7mn bpd against the level of 2020, Russian Deputy Prime Minister Alexander Novak said in an interview with Rossiya 24 TV channel. “We expect that demand will recover during 2021. As you know, it is still below the pre-crisis level by about 6-7mn barrels per day. During 2021, there will be 3-5mn barrels of demand growth,” he said.
OPEC+ has agreed to modestly increase output in January​, revising its original schedule of quota relaxation. The alliance of oil producers will boost production by 500,000 barrels per day (bpd) next month. The decision represents a compromise between OPEC+’s two blocs. OPEC, led by Saudi Arabia, wanted to scrap plans for a 2 million bpd relaxation and keep output levels unchanged. Meanwhile, Russia wanted to boost output as oil prices recover on positive COVID-19 vaccine news. Oil markets have cheered the news of a deal between the parties. While the decision to boost output will increase supply on the global market, it left traders bullish about the strength of the OPEC+ alliance.
124 ​RUSSIA Country Report​ January 2021 www.intellinews.com