Russian oil output falls in March to 11.05mn bpd

MOSCOW: Russian oil output was 11.05 million barrels per day (bpd) in March, down 200,000 bpd from October - the baseline for a global deal to curb oil production - in line with a government promise, Energy Ministry data showed on Sunday.

The Organization of the Petroleum Exporting Countries and 11 other oil producers led by Russia, agreed in December to cut their combined output by almost 1.8 million bpd from October to reduce bloated global inventories and support weak oil prices.

Russian Energy Minister Alexander Novak has said Russia would cut its oil output by 200,000 bpd by the end of the first quarter and by 300,000 bpd by the end of April.

The accord is effective until the end of the first half of the year, and OPEC and non-OPEC producers will look at extending the deal by six months.

OPEC is scheduled to hold its semi-annual meeting on May 25 and a meeting with non-OPEC producers will also be held around this date.

Oil analysts have grown more unsure that OPEC's supply cut will be enough to offset the increase in US production and do not believe prices will reach $60 a barrel until early next year, according to a Reuters poll.

The decline in Russian oil output in March was mostly due to cuts by so-called small producers, whose total output fell by 1.1 percent month-on-month.

Production at both Russian majors Lukoil and Surgutneftegaz dipped by 0.9 percent last month, while output at Rosneft, the world's largest traded oil producer, edged up by 0.1 percent from February.

In tonnes, Russian oil output reached 46.739 million versus 42.434 million in February, which was three days shorter. Reuters uses a tonnes/barrels ratio of 7.33.

Russian oil shipped by state pipeline monopoly Transneft to ports for export rose to 2.944 million barrels per day in March, or 12.452 million tonnes, from 2.819 million bpd in February.

Oil pipeline exports from Russia rose last month to 4.415 million bpd from 4.311 million bpd in February.

Natural gas production was at 58.79 billion cubic metres (bcm) last month, or 1.9 bcm a day, versus 58.52 bcm in February.