MOSCOW: Russia increased daily oil and gas condensate output in July by 2% from the previous month to 1.468 million tonnes, or 10.76 million barrels per day (bpd), Kommersant daily newspaper reported on Monday, citing sources familiar with data.
Russian oil production has dropped sharply after Moscow faced western sanctions as it sent troops to neighbouring Ukraine in February. Output started to gradually increase over the past months but still remains below pre-sanction levels.
According to the newspaper, Gazprom Neft, the oil arm of the state gas company Gazprom, and Surgutneftegaz were the fastest growing oil companies by production in July.
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Russian oil producers prefer to process the oil domestically rather than sending it abroad, the paper said, with processing increasing by more than 4% from June to 0.8 million tonnes per day, or to 5.68 million bpd.
Oil exports abroad were down 1.4% at 0.7 million tonnes per day, or to 4.94 million tonnes, from June, Kommersant’s sources said, with Europe increasing purchases and supplies to Asia falling.
The Organization of the Petroleum Exporting Countries and allies led by Russia, collectively known as OPEC+, will by August have fully unwound record output cuts in place since the COVID-19 pandemic took hold in 2020.
OPEC and its allies will consider keeping oil output unchanged for September when they meet next week, despite calls from the United States for more supply, although a modest output increase is also likely to be discussed, sources said last week.
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