Page 180 - RusRPTAug24

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
Russia slashed oil production by 20,000 barrels per day in June, though it fell short of fulfilling its voluntary cuts within OPEC+ agreements by 240,000 barrels per day, the International Energy Agency (IEA) said in its July report.
Russia’s oil production reached 9.22mn barrels per day last month. However, considering voluntary cuts implied for June, output was planned at 8.98mn barrels per day.
Total volume of voluntary cuts by OPEC+ nations equals around 2.2mn barrels per day both in Q2 and in Q1. Meanwhile, Russia slashed oil supplies to global markets, not production, by 500,000 barrels per day in Q1. In Q2 both export and output went down. Production and export were to fall by an average of 471,000 barrels per day in three months. In April, Russia’s output reduction was to reach 350,000 barrels per day, while export was to be cut by 121,000 barrels per day. In May, production and export were to be reduced by 400,000 and by 71,000 barrels per day, respectively. In June, only production was to be cut - by 471,000 barrels per day.
Russia’s Energy Ministry said earlier that the country’s oil output within voluntary cuts on the OPEC+ agreement was slightly higher in April and May due to technical difficulties of output reduction. However, the issue of overproduction was to be solved in June.
Russia was to present a plan to compensate for outstanding overproduced volumes to the OPEC secretariat.
Russia’s oil export decreased by 160,000 barrels per day in June to 7.6mn barrels per day, while export revenues fell by $190mn to $16.7bn, the International Energy Agency (IEA) reported. Oil export from Russia went down mainly due to a decrease in supplies of petroleum products by 130,000 barrels per day to 2.6mn barrels per day, according to the agency. The price of Russia’s Urals export oil grew by $2.2 in June to around $67 per barrel, the IEA noted. The discount of Urals supplied to India to Dubai crude amounted to $4.07 in June, down by $1.7. Meanwhile the discount of Urals to Brent crude fell by almost $2 to $14.7 per barrel.
O&G exports reached $234bn in 2023 and are projected to drop to $214bn in 2024 and $181bn in 2025. KSE projects a current account surplus of $76bn
180 RUSSIA Country Report August 2024 www.intellinews.com