Russia’s Nov crude, condensate output above OPEC+ target at 11.24 mil b/d

  • Dec 03, 2019
  • Investing

Russia’s crude and condensate output was again above its target level under the OPEC+ agreement in November, totaling 46 million mt, equivalent to around 11.24 million b/d, according to preliminary data released Monday by the Central Dispatching Unit of the Russian energy ministry.

Under the current agreement among members of OPEC+ — a coalition of OPEC and other oil producers — Russia committed to cut around 230,000 b/d from its October 2018 output of 11.42 million b/d.

Russia has had mixed success in complying. It gradually reduced production in the first quarter of 2019 to hit the target, before over-complying in May-July as a result of crude supply disruptions caused by a major organic chloride contamination of crude shipped to Europe via the Druzhba pipeline.

Since August, it has been producing above its target under the OPEC+ deal.

Russian energy minister Alexander Novak previously said that producers were aiming to comply with the agreement in November, but he was considering asking the producer group to exclude new condensate volumes from its quota. He said that condensate output will rise as new gas fields come on stream, but as it is not sent to export, it should be excluded from the agreement. Novak said last week that condensate currently accounts for 7%-8% of production.

The current OPEC+ deal is due to expire at the end of the first quarter of 2020.

Producers will meet for talks this week in Vienna. OPEC officials have indicated that they may extend the deal, but Russia wants to delay a decision until closer to the expiry date, due to uncertainty over market conditions up to the end of the March.

Russia’s daily average crude and condensate output was up 0.09% month on month from the 11.23 million b/d produced in October. It was down 1.1% on the year.

Russian oil exports in November totaled 19.35 million mt, or around 4.7 million b/d. Daily average exports were down 11.3% on the month, and 4% on the year.

Deliveries of Russian oil to the domestic market totaled 25 million mt, or around 6.1 million b/d in November. Daily average deliveries were up 6.5% on the month and 4% on the year.

Source: Platts