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compared to last month’s assessment. Russia carries the largest share of the production adjustments of the non-OPEC countries participating in the agreement," the organization said. "Non-OPEC liquids production growth in 2020 (including processing gains) has been revised down by a considerable 3.26mn barrels per day from the previous assessment and is now forecast to decline by 1.50mn barrels per day in 2020. The expected global economic recession due to COVID-19 and resulting demand shock are also forecast to cause considerable supply disruptions," OPEC said.
China increased imports of Russian crude by more than 30% in March
compared to a year earlier, while decreasing Saudi imports of the commodity, Reuters ​reported citing Chinese customs data. China has been boosting oil exports in a move seen as taking advantage of record low prices, which sank amid crumbling demand and global lack of storage space. The coronavirus pandemic has nevertheless severely cut the demand of one of the top global importers, but in March China purchased a total of 9.68mn barrels per day (bpd), 4.5% than it did during the same period in 2019. Russia and Saudi Arabia supplied almost equal amounts of oil to the country last month, with shipments standing at 7.02mn tonnes (1.66mn bpd) and 7.21mn tonnes (1.7mn bpd) respectively. However, the data released by the General Administration of Customs show that purchases from Riyadh fell 1.6%, while Russian crude imports rose 31%, according to Reuters calculations. The increased imports come as the Chinese economy is slowly getting back to normal,
Oil producing counties might cut production 10mmbbl/d from the 1Q20 levels​, Vedomosti writes, quoting President Vladimir Putin. Minister of Energy Alexander Novak has suggested a temporary production cut lasting for several months with an ensuing increase as demand recovers. According to Novak, demand has already fallen 10-15mmbbl/d and might drop 15-20mmbbl/d shortly, which corresponds to around 20% of total global oil supply.
FCS stats revealed the price of gas to China. ​According to the Federal Customs Service’s export statistics, Gazprom’s average selling price of gas delivered to China in late 2019-early 2020 via the recently launched Power of Siberia pipeline was c$200/mcm.
Demand for motor fuel in Russia falls. ​Vedomosti, quoting Minister of Energy Alexander Novak, writes that demand for motor fuel in Russia has fallen 20-30% in Moscow and 10-15% in other large cities. According to Novak, in the next two weeks, the decline might reach 40%, as the virus-related lockdownscontinue.​A​ ccordingtoanotherofthepaper'ssources,such demand declines have already occurred. During the past two weeks, the demand for gasoline and diesel motor fuel in Moscow and the Moscow Region might have declined 45% and 30%, respectively.
The Russian government has approved the country’s draft 2035 energy strategy, raising the forecast for production of natural gas and liquefied natural gas (LNG) in the year​, the Energy Ministry said on April 3. The gas production plan was raised from 860bn cubic meters to 1 trillion cubic meters per year in 2035 from 850–924bn cubic meters, while the LNG production plan was raised to 80–140mn tonnes from the previously expected 70–81mn tonnes. The LNG production plan for 2024 was kept at 46–65mn tonnes and the gas output plan remained unchanged at 795–820bn cubic meters.
94​ RUSSIA Country Report​ May 2020 ​ ​www.intellinews.com