Ahead of promised cut, Russia's oil output hits record high

Fri Dec 2, 2016 9:34am EST
 
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By Katya Golubkova

MOSCOW (Reuters) - Russia plans to use its November oil production, which was its highest in almost 30 years, as its baseline when it cuts output under this week's deal with OPEC, Deputy Energy Minister Kirill Molodtsov said on Friday.

Russia has promised to gradually cut output by up to 300,000 barrels per day (bpd) in the first half of 2017 as part of a deal with other producers aimed at supporting oil prices.

Its daily oil production rose to an average of 11.21 million bpd in November, Russia's highest since the Soviet era, energy ministry data showed on Friday.

That was 500,000 bpd higher than in August, the month before Russia and OPEC reached a preliminary agreement in Algiers to cap production.

Under this week's follow-up agreement, the first between OPEC and Russia since 2001, specific cuts for individual states were set, with almost all OPEC members agreeing to cut from October levels.

But Russia will use its November-December output levels, Energy Minister Alexander Novak told reporters on Thursday. November's production rose only slightly from October, by just 10,000 bpd, ministry data showed.

"The peak of daily production for November was 11.231 million barrels," Deputy Energy Minister Molodtsov told a conference in Moscow.

"All our agreements will clearly be formed around this figure," he said. According to his presentation, Russian production could grow to 11.3 million bpd in December.   Continued...

 
A worker checks the valve of an oil pipe at an oil field owned by Russian state-owned oil producer Bashneft near the village of Nikolo-Berezovka, northwest of Ufa, Bashkortostan, Russia January 28, 2015. REUTERS/Sergei Karpukhin/File Photo