Related Articles
Report
Forward article link
Share PDF with colleagues

Russian supply vs production

Extending the deal with Opec is the only barrier to oil-output growth in 2017. But Russian exports should keep rising whatever is decided in Vienna

Despite financial and technological sanctions, lower oil prices and the depletion of mature fields, Russian oil firms lifted output in 2016 by 2.6%, to 11m barrels a day—within touching distance of the Soviet-era high. This year, the only real obstacle to further growth is not found beneath the soil, but above it: an extension of the deal with Opec to restrain supply. Either way, exports will remain strong. The agreement struck last year involved energy minister Alexander Novak pledging a 300,000-b/d cut from Russia. It prompted some scepticism—not least about the government's ability to enforce this on Russia's producers: private companies produce 40% of the country's oil but no legal meth

Also in this section
Now what for the Opec deal?
20 November 2017
Opec has brought global crude stocks to heel. But its job is far from over
Oil: The price is not right
20 November 2017
The market wants to trade a demand slow-down of the future, while ignoring the fundamentals of the present
Another heave for Opec
17 November 2017
Opec must extend its deal or face another sell-off. Then it needs to find an exit strategy