Russia cut its oil production in early January by about 100,000 barrels per day (Mbbl/d) from December after an agreement with OPEC to cap global crude output, two sources from the energy sector told Reuters on Jan. 9.
Russia's oil and gas condensate output averaged 11.1 MMbbl/d in the period from Jan. 1 to Jan. 8, according to the two sources. This was down from 11.21 MMbbl/d in December and October's level of 11.247 MMbbl/d, a starting point for output reduction agreed with OPEC.
The sources declined to give the reason for the fall or name the companies that reduced their production. The cuts came amid a cold spell in Russia, and in its oil production heartland of Western Siberia in particular, where temperatures reached as low as minus 60 degrees Celsius (minus 76 degrees Fahrenheit).
Russian Energy Minister Alexander Novak had said the targeted level of Russian output was 10.947 MMbbl/d after the production cut deal. He also said that Russia plans to reduce oil output by 200 Mbbl/d in the first quarter of 2017 and reach the cuts of 300 Mbbl/d thereafter, as agreed with OPEC in December.
Some other countries, including Saudi Arabia, the world's top oil exporter and biggest OPEC producer, have also reduced their output.
Saudi Arabia cut oil output in January by at least 486 Mbbl/d, to 10.058 MMbbl/d, fully implementing OPEC's agreement to reduce output, according to a Gulf source familiar with Saudi oil policy.
Many analysts still expect Russian oil production to grow in 2017 overall and reach a record high due to new fields coming online.
"We expect Russian crude and condensate output to decline only gradually from the remarkable Sep-Dec 2016 production levels, and to reach the announced 300,000 [barrels per day] output cut at the end of H1 2017," Vienna-based JBC Energy said in a note during the week of Jan. 2.
"Year-on-year, however, we still see Russian crude production rising 170,000 [barrels per day] to average 11.14 million [barrels per day] in 2017."
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