Russia cut oil production

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Photo: Nabil al-Jurani / AP Photo

Average daily oil production in Russia in November 2018 fell month-on-month by 0.4 per cent to 11,369 million barrels per day, Bloomberg reports, citing data from the Central dispatching Department of fuel energy complex (CDU TEK).

In annual terms, average daily production at the beginning of December rose to 3.9 percent. Under the current agreement OPEC+ Russia produced 422 thousand barrels per day above its target level.

The figures dropped ahead of the OPEC meeting+ in early December. There are the largest oil producers must decide whether to cut production in 2019.

When the price of Brent crude has fallen more than 30 percent since the beginning of October, to 57,78 dollars per barrel, Russia started negotiations with Saudi Arabia to reduce production. The details of the agreement, including the potential reduction of production, is still not clear.

Russia’s actions have already led to a sharp increase in prices. The evening of 29 November, a barrel of Brent traded on London exchange ICE Futures at 59,84 of the dollar, the increase amounted to 1.8 percent. By this time the North American barrel of WTI cost 51,74 dollar, strengthening by 2.84 percent.

Video, photo All from Russia.

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