Russian oil output was stagnant at 10.97 million barrels per day (bpd) for a third month in a row in May, again exceeding quotas set under a global deal, Energy Ministry data showed on Saturday. Russia, one of the world's largest crude producers, and the Organization of the Petroleum Exporting Countries (Opec) agreed to cut their combined output by 1.8 million bpd in order to smooth out bloated oil inventories and prop up prices.
Russia has undertaken to cut its production by 300,000 bpd from 11.247 million bpd reached in October 2016, the baseline for the agreement. Production for the past three months in Russia has been at the highest level since output of 11 million bpd in April 2017. In tonnes, oil output reached 46.377 million in May versus 44.878 million in April. Reuters uses a barrel/tonne ratio of 7.33.
Russian oil majors Lukoil and Surgutneftegaz kept their production unchanged last month from April. Output at Gazprom Neft, the only Russian company, which produces oil offshore in the Arctic, declined by 1.1 percent. Output at the world's largest listed oil producer Rosneft edged up by 0.2 percent in May from April. Analysts said Rosneft is able to restore 70,000 bpd of output in just two days if global production limits are lifted.
Opec and non-Opec producers will meet in Vienna on June 22-23 to review the current deal, which is valid until the end of the year. They can make some adjustments, such as to the size of the output curbs and the timing of easing the restrictions. A Reuters survey found that the Opec oil output fell to a 13-month low in May due to declining Venezuelan production, Nigerian outages and strong compliance by its members with the supply-cutting deal.
Russian oil pipeline exports fell in May to 4.217 million bpd from 4.367 million in April. Gas production was at 58.12 billion cubic metres (bcm) last month, or 1.87 bcm a day, versus 61.86 bcm in April.
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