Page 7 - FSUOGM Week 32 2021

FSUOGM PERFORMANCE FSUOGM
Russia expands oil supply in July
RUSSIA
OPEC+ permitted
its members to bring 400,000 bpd of supply back in July.
RUSSIA ramped up oil supply in July for the first time in three months after a further easing of OPEC+ cuts, figures from the energy ministry’s CDU-TEK unit show.
Producers extracted 44.24mn tonnes (10.46mn barrels per day) of crude and conden- sate during last month, marking an increase of 0.3% from the level in June. OPEC+ permitted its members to bring 400,000 bpd of supply back in July.
It is difficult to assess Russia’s compliance with OPEC+ quotas, as these quotas only apply in oil production and not condensate, and Russia does not provide a breakdown of its data. However, Deputy Prime Minister Alexander Novak said last week that the nation’s adherence to the deal would be at around 100% for July.
Russia’s compliance reached 96% in June, up from 94% in May and 91% in April, the Inter- national Energy Agency estimated in its latest report. While Russia could have boosted output in June, it did not do so because of scheduled maintenance work.
Looking forward, OPEC+ has agreed to raise production by 400,000 bpd each month between August and December, under an agreement reached in mid-July. Russia wants to see supply
restored faster, as its budget is less dependent on oil revenues than that of Saudi Arabia and some of OPEC+’s other members.
OPEC+’s cuts have produced the desired effect, with oil prices rallying back to pre-pan- demic heights in recent months. On the back of these higher prices, Russian oil export revenues surged to $47.6bn in the first half of 2021, up 21.5% versus the level a year earlier, federal cus- toms data shows.
This growth came despite a contraction in oil export volumes of 11.8% to 88.2mn tonnes (3.57mn barrels per day). In response to the price collapse last year, Russia and other members of the OPEC+ alliance made unprecedented cuts to production to try and rebalance the market. Rus- sian oil export revenues were up 22.9% month on month in June at $10.9bn, the data shows, while volumes were up 11.5% at 22.65mn tonnes.
LNG export revenues from Russia’s two main liquefaction terminals on the Yamal Peninsula and on Sakhalin Island fell 15.9% to $3.3bn in the first half of the year, even as volumes rose by 7.3% to 35.3mn cubic metres. In June, LNG revenues soared to $1.384bn from $30.2mn in May, while volumes expanded to 12.1 mcm from 0.3 mcm in the previous month. ™
Week 32 11•August•2021 w w w . N E W S B A S E . c o m P7