Russian oil production stagnates over the month at 10 million bpd in December

Moscow –
* Production, shipments down over one year thanks to OPEC + quotas

* Daily average exports down 1.5% over the month

Russia produced 42.46 million tonnes of crude and condensate in December, or about 10.04 million bpd, according to preliminary data released by the central distribution unit of the Russian Energy Ministry on 2 January.

Production increased slightly from 41.03 million tonnes, or 10.03 million b / d produced in November 2020.

Production fell 11% from 47.65 million tonnes, or 11.27 million b / d produced in December 2019. This is due to larger production cuts under the OPEC agreement. + in 2020 compared to 2019.

Total crude production reached 512.68 million tonnes in 2020, or about 10.27 million bpd, down 8% year on year.

Russia’s quota for crude production under the deal was 8.99 million bpd for August-December 2020. The deal does not include condensate. Russia did not release a breakdown for crude and condensate production in December, but condensate typically accounts for around 8% of total production.

From January, Russia’s quota increases by 125,000 bpd. The group now meets monthly to discuss market conditions and potential changes in production quotas. The next meeting is scheduled for January 4th. At the end of December, Russian Deputy Prime Minister and main OPEC + negotiator Alexander Novak said Moscow would support a further 500,000 bpd increase in the total OPEC + quota from February if conditions of the market are stable.

Uncertainty over the impact of the coronavirus pandemic and vaccine deployments on demand in 2021 complicates the group’s long-term planning.

Decrease in daily exports

December’s Russian oil exports were 17.03 million tonnes, or about 4.03 million bpd. Average daily shipments are down 1.5% from the 4.09 million bpd exported in November 2020. Exports are down 16% year on year, in line with the drop in production quotas in 2020 compared to 2019 as part of the OPEC + production reduction agreement.

Exports totaled 219.16 million tonnes in 2020, or about 4.39 million b / d, down 11.8% year on year

In December, domestic crude and condensate deliveries were 23.27 million tonnes, or about 5.5 million bpd. Average daily shipments rose 0.7% from November volumes of about 5.46 million bpd. Shipments were down 7% from 25 million tonnes, or about 5.91 million b / d delivered to the domestic market in December 2019.

Domestic deliveries totaled 273.32 million tonnes in 2020, or about 5.47 million bpd, down 5.3% year on year.

Crude oil production of the main Russian producers (in thousands of bpd):

Source: Central Shipping Unit of the Russian Ministry of Energy