Russian oil output flat on month at 10 million b/d in December

Moscow — *Output, shipments down on year due to OPEC+ quotas

*Daily average exports down 1.5% on month

Russia produced 42.46 million mt of crude and condensate in December, equivalent to around 10.04 million b/d, according to preliminary data released by the central dispatching unit of the Russian energy ministry Jan. 2.

Output was up slightly on the 41.03 million mt, or 10.03 million b/d produced in November 2020.

Production was down 11% on the 47.65 million mt, or 11.27 million b/d produced in December 2019. This was due to deeper output cuts under the OPEC + agreement in 2020 compared with 2019.

Total crude production reached 512.68 million mt in 2020, equivalent to around 10.27 mil b/d, down 8% on year.

Russia's quota for crude production under the agreement was 8.99 million b/d for August-December, 2020. The deal does not include condensate. Russia has not released a breakdown for crude and condensate production in December, but condensate usually accounts for around 8% of overall output.

From January Russia's quota increases by 125,000 b/d. The group is now meeting on a monthly basis to discuss market conditions and potential changes to output quotas. The next meeting is scheduled for Jan. 4. In late December, Russian deputy prime minister and lead OPEC+ negotiator Alexander Novak said Moscow would support a further increase of 500,000 b/d in the total OPEC+ quota from February if market conditions are stable.

Uncertainty over the impact of the coronavirus pandemic and vaccine rollouts on demand in 2021 is complicating the group's long-term planning.

Daily exports drop

December exports of Russian oil were 17.03 million mt, or around 4.03 million b/d. Daily average shipments were down 1.5% on the 4.09 million b/d exported in November 2020. Exports were down 16% on year, in line with lower output quotas in 2020 compared to 2019 under the OPEC+ production cut agreement.

Exports totaled 219.16 mil mt in 2020, equivalent to around 4.39 mil b/d, down 11.8% on year

In December, deliveries of crude and condensate to the domestic market were 23.27 million mt, or around 5.5 million b/d. Daily average shipments were up 0.7% on November volumes of around 5.46 million b/d. Shipments were down 7% on the 25 million mt, or around 5.91 million b/d delivered to the domestic market in December 2019.

Domestic deliveries totaled 273.32 mil mt in 2020, equivalent to around 5.47 mil b/d, down 5.3% on year.

Crude output by key Russian producers ('000 b/d):

Source: Central dispatching unit of the Russian energy ministry