Russia's February oil output falls despite plans to raise it

Reuters2021-03-02

MOSCOW, March 2 (Reuters) - Russian oil and gas condensate output fell to 10.1 million barrels per day (bpd) in February from 10.16 million bpd in the previous month, despite plans to boost it, according to Reuters calculations based on an Interfax report citing official data.

Russia was due to raise its oil output by 65,000 bpd from February as the OPEC+ group of leading oil producers has agreed to ease curbs introduced by them to support prices and taper oversupply.

Oil and gas condensate production stood at 38.56 million tonnes for February, compared with 42.96 million tonnes in January, the news agency reported on Tuesday, citing data from the energy ministry.

The reason behind the fall was not immediately clear.

Two industry sources told Reuters last month that a possible explanation for the decline was that Russia exceeded its OPEC+ quota last year and OPEC's de facto leader Saudi Arabia, which is cutting its output unilaterally, has demanded all members compensate for over-production.

OPEC+ is due to have an online meeting this week to decide on production policy.

According to OPEC+ sources, the group will discuss a modest easing of oil supply curbs from April given a recovery in prices, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.

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