Russian oil output falls to 9.39mn bpd in May, close to OPEC+ goal

MOSCOW: Russian oil and gas condensate production fell to 39.7 million tonnes (9.39 million barrels per day) in May, near its target under a deal within the OPEC+ group, Interfax news agency reported on Tuesday, citing energy ministry data.

The figure was in line with data from sources, reported by Reuters on Monday, and down from 11.35 million barrels per day (bpd) in April.

Under the agreement between Russia and the Organization of the Petroleum Exporting Countries, a group known as OPEC+, Moscow has pledged to reduce its output by around 2.5 million bpd to 8.5 million bpd to help support oil prices.

The deal does not include output of gas condensate, a light oil.

Russia usually produces 700,000-800,000 bpd of gas condensate.

That means that excluding gas condensate, Russia produced 8.59-8.69 mn bpd of crude oil in May.

The ministry does not disclose gas condensate output on a monthly basis separately.

Interfax also said that Russian oil exports outside former Soviet Union in May reached 17.36 million tonnes, or 4.1 million bpd, down 14.2pc year-on-year.

OPEC+ agreed to cut its combined output by around 10 million bpd, or 10pc of global oil production, in May and June, with a subsequent easing of the reductions, to tackle economic fallout from the coronavirus pandemic.

OPEC+ may hold an online conference as early as Thursday to discuss its policy, compared with the original schedule of next week.

The group is due to discuss extension of the output cuts in its current pace.

Interfax also said that Russia's natural gas production fell by 9.2pc, year-on-year, in January - May, to 293.26 billion cubic metres.