Russian oil output up at 11.35M bpd

moscow — Russia raised oil and gas condensate output in April to 46.45 million tonnes, or 11.35 million bpd, from 11.29 million bpd in March, Interfax reported on Saturday, before it makes cuts this month under a global supply pact.

The report, which cited Energy Ministry data, showed April’s figure was the highest monthly average output since January 2019, when it was 11.38 million bpd.

Reuters uses the barrels/ tonnes ratio of 7.33.

The Organization of the Petroleum Exporting Countries, Russia and other allied producers, a group known as Opec+, agreed last month to cut their combined oil output by about almost 10 million bpd, or 10 per cent of global supply in May and June to tackle the economic fallout from the new coronavirus.

The United States, Norway, Canada and Brazil may add cuts that would bring the total reduction to 20 million bpd, or 20 per cent of global supply, although the coronavirus crisis has driven down demand by as much as 30 per cent, driving down prices.

Russia is expected to cut its oil production by 2.5 million bpd from a baseline of 11 million bpd in May and June.

This number exempts production of gas condensate, or light oil. Russian energy ministry does not disclose gas condensate production separately.

Crude prices firm

US oil prices were 5 per cent higher while Brent crude rose above $26 per barrel on Friday, with both benchmarks posting their first weekly gain in four weeks as Opec and its allies embark on record output cuts to tackle a supply glut due to the coronavirus crisis.

In April, US crude fell to an alltime low and traded negative for the first time on record while Brent hit a near-21-year low.

Brent futures for July eased 4 cents, or 0.2 per cent, to settle at $26.44 per barrel. The June contract expired on Thursday at $25.27. US West Texas Intermediate crude (WTI) ended the session 94¢, or 5 per cent higher, at $19.78 after climbing above $20 earlier in the session.

After three consecutive weeks of losses, Brent crude notched a gain of about 23 per cent while WTI rose about 17 per cent.

WTI also found support after US energy firms cut oil rigs for a seventh week in a row, bringing the total count down to 325, the lowest since June 2016, Baker Hughes said. —