Russia Kept Oil Production in August at July Levels
It amounted to 9.48 million b/d
Russia maintained oil production in August 2023 at the level of the previous month – 9.48 million barrels per day (b/d), according to a report by the International Energy Agency (IEA).
At the same time, the Russian Federation’s revenues from oil exports, according to the agency’s estimates, increased by $1.8 billion, to $17.1 billion, as rising prices compensated for the decrease in supplies.
In early August, Russian Deputy Prime Minister Alexander Novak stated that Russia is fully fulfilling its obligations to voluntarily reduce production, and the figure remains at 9.5 million bpd.
The IEA believes that cuts in oil production by Saudi Arabia and Russia will lead to a significant shortage on the global market in the fourth quarter, and that countries extending additional cuts could result in a loss of 1 million bpd in production in the fourth quarter.
In March, Russia began a voluntary reduction in oil production by 500 thousand bpd from the February average. The duration of this reduction was extended several times – first until June inclusive, then until the end of 2023, and after the OPEC+ meeting held on June 4 in Vienna, the decision on a voluntary production reduction was extended until the end of 2024. In August, the Russian Federation also reduced oil supplies to world markets by 500 thousand bpd in addition to its production reduction obligations, and in September it intends to reduce exports by 300 thousand bpd. At the beginning of September, the decision to reduce supplies by 300 thousand bpd was extended until the end of the year.
At the same time, Novak said in August that Russian oil companies would independently decide whether to reduce oil production or exports as part of the task of reducing supplies.
