Russia has mandated a reduction in oil production for the second quarter (Q2), aiming to achieve a target of nine million barrels per day (bpd) by the end of June, reported Reuters, citing sources.
This decision comes as part of Russia’s commitment to the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.
Go deeper with GlobalData
Earlier in the month, Russian Deputy Prime Minister Alexander Novak announced that Russia would decrease its oil output and exports by an additional 471,000bpd in Q2, in coordination with OPEC+.
The plan is to gradually ease export cuts while focusing on reducing production levels.
Although Novak has not specified the targeted output level, projections suggest that production could fall to nearly nine million barrels per day in June if the reduction is executed as planned.
The Russian energy ministry refrained from commenting on the matter, and Novak’s press office did not respond to a request for comment.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe production cuts are expected to coincide with a seasonal increase in refinery maintenance, with many facilities already experiencing reduced fuel production due to outages and Ukrainian drone attacks.
As of late last month, Russia’s oil output stood at 9.5 million barrels per day.
Since reaching an annual high of 11.7 million barrels per day in 2019, Russian oil and gas condensate production has dropped to around 10.8 million in recent months, following coordinated actions with OPEC+.
Russia has also ceased the disclosure of crude oil production statistics, classifying a large amount of data since February 2022.
According to sources and calculations by the publication, Russian oil production in April, May and June is expected to decline by approximately 3.6%, 4.1% and 4.9%, respectively, from March levels.
This development coincides with Indian refiners increasing their purchases of US crude as sanctions on Russia tighten, reported Reuters, citing data from the London Stock Exchange Group.
Ship tracking data indicates that more than 250,000bpd of US crude is set to arrive in India next month, marking the highest level in over a year.
With the enforcement of new US sanctions on Moscow, India, the third-largest oil importer and consumer globally, is seeking to diversify its oil sources.
The shipments, primarily bound for India’s west coast, have been chartered by companies including Reliance Industries, Vitol, Equinor and Sinokor, as reported by the news agency.
