Russia fails to meet obligations on oil output reductions

Despite lowering Russia lowering its oil output to 11.23 million barrels per day (bpd) last month from 11.25 million bpd in September, Russia has failed to meet its obligations under a global pact to curb production, energy ministry data showed this weekend, Reuters has reported. 

In January, OPEC, Russia and other producers - a group known as OPEC+ -  implemented a deal to cut oil output by 1.2 million barrels per day to support the market. 

According to Reuters calculations, which use a tonnes/barrel ratio of 7.33, the pact indicates Russia should cap output at around 11.17-11.18 million bpd. 

Russian Energy Minister Alexander Novak said later on Saturday that the country has cut its oil production by 211,000 bpd on average last month from October 2018 - the month that set the baseline for a global deal. 

This is still below the 228,000 bpd Russia pledged to cut under the deal with OPEC and other oil producers. 

Novak also said in a statement that by the end of October the cuts reached 298,000 bpd. 

Russia’s largest oil producer Rosneft was the biggest contributor to the cut last month, lowering its output by almost 1% from September. 

The agreement runs to the end of March 2020, and producers will meet to review the policy in December. Russia has said OPEC and its oil-exporting allies would factor in the slowdown of U.S. oil output growth when they meet. 

Natural gas production in Russia rose to 61.97 billion cubic metres (bcm) last month, or 2 bcm a day, versus 55.94 bcm in September. 

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