Russia’s crude oil harvest reached record high in 2017, though the country is participating in the OPEC-led emission reduction project. The Russians have been cleared with a clever maneuver to match the deal at the same time and raise the new peak.
On average, Russian oil production rose last year to 10.98 million barrels a day, which is 0.1 percent stronger than last year’s level, according to data released today. Although the rate of increase itself is not impressive, it is quite nice to see that this is the highest annual figure since 1991.
Moreover, meanwhile, Russia is participating in the OPEC-led mining reduction project,
which aims to curb the global supply surplus and raise oil prices – says Bloomberg. The co-operation has also been extended until the end of this year, indicating that OPEC and its external allies are firmly committed to normalizing the market. Unprecedented cooperation has actually helped the oil market and basically shapes the global energy policy.
The Russians have been able to set a new record as above, adding that the production was raised to 11.23 million barrels per day in October 2016 – a month before the agreement was announced. Subsequently, Russia agreed to reduce its yield by 300,000 barrels a day.
Although this maneuver resulted in the Russians being able to produce and reach a reduction agreement at a record level at the same time, OPEC has not complained about the strategy for the time being. Of course because Brent oil strengthened by 18 percent in 2017 and global stocks shrunk . What’s more, when it is revealed in November, the agreement will be deported to 2018, while the Saudi Energy Minister attended the conference of his Russian counterpart, where he said that there is complete consistency between the two countries.
However, Russian data also revealed that in December, production was 10.95 million barrels a day, an increase of 0.1 percent compared to November. Exports fell by 5.3 percent to 5.24 million barrels per day.