Between April 1 and 6, Russia pumped the equivalent of 10.52 million barrels per day (bpd) of oil, according to Bloomberg estimates based on energy ministry data in tonnes. This is about 500,000 bpd below average Russian output for the entire month of March. If the trend continues throughout April, Russia could see its biggest monthly drop in oil production since May 2020, when it began reducing its output voluntarily as part of the OPEC + deal.
Buyers in the West continue to shy away from Russian oil shipments, and many analysts say it is only a matter of time before at least some Russian supplies are removed from the market, despite indications that much of Asia continues to buy Russian crude at big discounts. .
Russia’s production in March had already fallen since February, albeit by a small margin. Russia pumped the equivalent of 11.01 million bpd of crude oil and concentrate in March, according to Bloomberg estimates based on a report by the Russian news agency Interfax. This is 0.6% lower than production in February.
The fall in March was the first such fall since August 2021, when a fire at a Gazprom processing plant in Western Siberia stopped condensate production.
A report last week also showed that Russian oil production fell in March from February, signaling that OPEC’s key partner in the OPEC + deal has not taken advantage of the monthly increase of about 100,000 bpd allowed under the deal.
In another sign that Russia may find it difficult to sell all its cargo, Transneft, the Russian oil pipeline operator, informed local oil companies that it would limit the intake of crude oil that has not yet been sold due to full storage, Reuters reported. last week, citing sources familiar with the plan.
By Charles Kennedy for Oilprice.com
More top readings from Oilprice.com:
