Russian oil production at its highest level since the collapse of the Soviet Union

The Russian Ministry of Oil has shown in its latest data that Russian oil production remains stable, having reached its highest levels since the collapse of the Soviet Union. The increased levels are mainly due to easing restrictions on supplies.

Recent oil economic data shows that the production of Russian oil reached 11.21 million barrels per day in August, the same figures as in July. In terms of quantity, the production of Russian oil reached 47.42 million tons in August, similar to July, when the total was 47.43 tons.

At the beginning of 2017, the Russian Federation led the production reduction agreement together with the Organization of the Petroleum Exporting Countries and other countries outside the Organization. The agreement stipulated the commitment of all oil-exporting countries to reduce production in a way that leads to the stability of oil prices and puts an end to the imbalance in the markets.

At the beginning of the agreement, Russia agreed to cut production by 11.24 million bpd, the highest level since the collapse of the Soviet Union, which began in October 2016.

In July, the improvement in Libyan oil production and the rise in Iraqi exports helped reach record levels, assisting OPEC’s output rise to its highest level since the beginning of the year. This comes despite the scarcity of Iranian oil exports after the recent US economic sanctions.

A survey conducted by OPEC and non-OPEC observers showed that the countries participating in the low-output agreement cut their output in July by 9%, above the target barrier. Russian Energy Ministry data showed that major Russian oil companies such as Rosneft and Lukoil raised production last August compared to July.

Russian oil exports through pipelines in August amounted to about 4.343 million barrels per day, up from 4.179 million barrels per day recorded in July. The data showed that Russian natural gas production reached 54.62 billion cubic meters last month, equivalent to 1.77 billion cubic meters per day compared to 53.93 billion cubic meters in July.