Russia\u2019s crude oil and condensate output fell to a nine-year low in 2020 as the nation took part in historic OPEC+ production curbs.<\/p>\n
The Organization of Petroleum Exporting Countries and its allies implemented unprecedented output cuts from May as global lockdowns to contain the spread of Covid-19 crushed demand. Russia shouldered the biggest burden of cutbacks along with OPEC\u2019s de facto leader, Saudi Arabia.<\/p>\n
Over the year as a whole, Russia produced 512.7 million tons of crude and condensate, according to preliminary data from the Energy Ministry\u2019s CDU-TEK unit. That equates to daily output of 10.27 million barrels, based on a 7.33-barrel-per-ton ratio. The decline followed 11 consecutive years of growth.<\/p>\n
The OPEC+ coalition returned some halted supply to the market in August, giving Russia a crude-only quota of 8.99 million barrels a day until year-end — 500,000 barrels a day higher than in May-July. The CDU-TEK data doesn\u2019t break out separate figures for condensate — which isn\u2019t included in Russia\u2019s quota — making it difficult to assess the nation\u2019s adherence to the deal.<\/p>\n
According to International Energy Agency data, Russia\u2019s compliance with the OPEC+ agreement averaged 95% from May through November. That means the country pumped 22 million barrels in excess of its quota over the period, or 100,000 barrels a day, the IEA said in its monthly market report.<\/p>\n
In December, Russia produced 42.46 million tons, according to Bloomberg calculations based on CDU-TEK numbers. If condensate output was the same as in the previous month — about 956,000 barrels a day — its daily crude-only supply reached about 9.083 million barrels, some 90,000 barrels above the promised cuts.<\/p>\n
This year, OPEC+ will raise daily crude production in monthly increments of as much as 500,000 barrels, reining in a previous plan to boost output by almost 2 million barrels a day starting Jan. 1.<\/p>\n
Energy ministers have agreed to gather every month to discuss the size of each increment, allowing the alliance to react to changes in demand amid the pandemic. On Monday, OPEC+ will decide how much supply should be added to the market next month.<\/p>\n
\u201cIf the situation is normal, stable, we will support the increase,\u201d Russia\u2019s Deputy Prime Minister Alexander Novak said last month, when asked whether Russia wants a further hike of 500,000 barrels a day in February. \u201cWe must reach levels that were envisaged earlier, from Jan. 1, gradually, without pulling the market too much.\u201d<\/p>\n