Russia reduces oil production in May close to OPEC+ target

Oil and gas condensate production in Russia declined by 15 percent year-on-year in May to 39.7 million tons or 9.39 million barrels per day (bpd), according to Energy Ministry data.

The figure is down from 11.35 million barrels per day in April and near Moscow’s target under a deal within the OPEC+ group. Data showed Russia’s natural-gas production decreased by 9.2 percent, year-on-year, in January to May, to 293.26 billion cubic meters. The country usually produces 700,000–800,000 bpd of gas condensate. That means that, excluding gas condensate, Russia produced 8.59–8.69 million bpd of crude oil in May.

According to statistics, Russian oil exports outside the former Soviet Union in May stood at 17.36 million tons, or 4.1 million bpd (down 14.2 percent year-on-year).

Under a historic deal with the Organization of the Petroleum Exporting Countries, Moscow has agreed to reduce its output by around 2.5 million bpd to 8.5 million bpd to help support oil prices. 

Amid the global oil demand crash due to the pandemic, OPEC+ agreed to cut its combined output by around 10 million bpd (or 10 percent of global oil production) in May and June, with a subsequent easing of the reductions. The group is expected to hold an online conference this week to discuss the extension of output cuts.

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