Russian Oil Output Jump to a New Record before OPEC Talks

Russia’s crude production has jumped to a new post-Soviet record. boosting the nation’s budget revenue as it prepares for talks with OPEC+ on further cooperation. according to a government official.

The country’s oil output is currently fluctuating between 1.54 MM and 1.55 MM tons a day — driven mainly by state-run giant Rosneft — the official said. asking not to be named as the information isn’t public yet. That equates to 11.29 MM to 11.36 MMbpd. beating the previous record of 11.25 MMbpd set in October 2016 before Russia agreed with OPEC to cut production.

Russia’s output increase comes just days before it meets in Algeria with other members of the group known as OPEC+. The producers agreed in June to start rolling back their output cuts to offset losses from countries including Venezuela and Iran while also responding to calls from U.S. President Trump to ease pressure on prices. This weekend. ministers will discuss supply and demand forecasts for the fourth quarter and the potential for extending cooperation into next year.

While Russia could boost its production by about 300.000 bpd above the October 2016 record within a year. there’s still no decision on tapping this spare capacity and the size of the increase will depend on talks with the wider OPEC+ group. Russian Energy Minister Alexander Novak said last week.

Iran said Thursday that it would veto any OPEC decision which shrinks its market share. Iranian Oil Minister Bijan Namdar Zanganeh said an OPEC committee set to meet this weekend in Algiers has no authority to impose a new supply deal. He added that some producers are trying to create an alternative suppliers’ forum that supports U.S. policies hostile to Iran’s interests.

 

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