• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Oil Prices Remain Rangebound As Volatility Fades

Oil Prices Remain Rangebound As Volatility Fades

Oil price volatility has fallen…

How Biden’s LNG Export Pause Could Backfire

How Biden’s LNG Export Pause Could Backfire

President Biden's temporary pause on…

Russia Proceeds With Cuts, Compliance Still Very Low

Russia’s crude oil output dropped in February to some 11.10 million bpd from 11.11 million bpd in January and from the more than 11.20 million bpd in October last year – the reference level for OPEC/non-OPEC production cuts, sources familiar with the data told Reuters on Wednesday.

Calculations made by Reuters show that last month’s Russian cut from the October baseline level stood at 100,000 bpd, meaning that compliance is just 33 percent.

Russia, however, has not promised outright production cut of the full 300,000 bpd it pledged to take off the market. It has always said that the cut would be gradually implemented by the end of the first half of this year, the initial period that OPEC and 11 non-OPEC nations – led by Russia – had set for a coordinated effort to reduce global oil supply.

Officially, Russia has said it cut 117,000 bpd in January. Earlier this week Russian Energy Minister Alexander Novak said that his country’s oil production in February would be lower than the January output, with Moscow cutting more than the 117,000 bpd cut it made in the first month of the year. Novak said that Russia would be trying to speed up the gradual cutting of the 300,000 bpd, adding that anything is possible, when asked whether the 300,000-bpd-cut could be reached in early April. The timing will depend on the capabilities of the companies, the minister noted.

Related: OPEC Struggling To Hold On To Asian Market Share

Russia’s Energy Ministry will be releasing official production data for February on Thursday.

Unlike Russia and the general low compliance at non-OPEC nations -- mostly dragged down by Moscow’s gradual cut -- OPEC compliance so far has been estimated by international agencies, industry experts and OPEC itself at exceeding 90 percent, courtesy of deep cuts by Saudi Arabia.

Last week OPEC said that the combined compliance rate of OPEC producers and the 11 non-OPEC nations reached 86 percent in January, and urged all parties “to press on towards full and timely conformity.”

By Tsvetana Paraskova

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News