The Russian oil industry reached its February 2022 production level this month as average daily oil and condensate production rose by about 2% from January to around 1,508 million tons per day. newspaper reports “Kommersant” with reference to sources.
Kommersant writes that if we draw conclusions based on data from the last days of February, this month’s oil production will exceed last year’s level.
In January-February 2022, production was growing rapidly on the backdrop of increased quotas under the OPEC + agreement, but since March oil production in the country has fallen sharply, on the back of the imposition of sanctions on Russia and the rejection of Russia. many Western buyers buy Russian raw materials. The newspaper states that production has gradually recovered throughout the year, but has now only reached February 2022 level.
According to the newspaper, Russian oil companies are currently ramping up production on the back of a three-fold decrease in export duties in March compared to December, to $14 per tonne. oil. An incentive to increase oil exports is a slight decrease in the Urals’ discount to Brent.
According to Boris Sinitsyn of Renaissance Capital, oil production has stood at just under 10 million barrels per day since November, possibly exceeding that level by 1-2% in February. He also states that in February oil companies could increase daily production before a possible drop in March, but now, compared to January, the decrease in production in March could be about 7% per month, or about 650 thousand bpd. According to him, this could support oil prices.
Earlier, the North Asian Economic Research Institute (ERINA) suggested that the decrease of 500 thousand barrels per day production in the Russian market in March 2023 is not so negative. to influence in barter commodity prices.