RUSSIA DATA: August oil output rises 5% on month as OPEC+ quota eased

Moscow — Russia produced 41.70 million mt of crude and condensate in August, equivalent to around 9.86 million b/d, according to preliminary data released by the central dispatching unit of the Russian energy ministry Sept. 2.

Output was up 5.1% on the month, driven by an easing of quotas under the OPEC+ agreement from Aug. 1.

Russia's quota for crude production under the agreement was 8.492 million b/d for May-July, and increased to 8.993 million b/d for August-December.

This quota may be revised, with the Joint Ministerial Monitoring Committee that oversees the agreement due to meet next on Sept. 17.

Russia's quota does not include condensate production. The Russian energy ministry has not yet provided separate figures for crude and condensate production for August. Condensate accounts for around 8% of overall output.

Analysts at VTB Capital said that Russian production was likely broadly in line with Russia's OPEC+ quota for August.

"If we assume that condensate output was flat month on month (at 90,000 b/d), then the entire production increase would be attributable to oil, bringing its production to 9.2 million b/d. We view this as broadly in line with the official OPEC+ quota for August of 9 million b/d," VTB Capital said in a research note.

Russia's crude and condensate production was down 12.8% from 11.3 million b/d produced in August 2019.

Exports of Russian oil rose 7.4% on the month to 16.88 million mt, or around 3.99 million b/d in August. Exports were down 23% on deliveries of 21.8 million mt, or around 5.15 million b/d, in August 2019.

August domestic deliveries totaled 22.76 million mt, equivalent to around 5.38 million b/d, up 1.6% on the month and down 10% on the year.