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Russia Fulfilled The OPEC+ Deal In July

Russia Fulfilled The OPEC+ Deal In July

The average daily production oil and condensate in Russia from July 1 to 29 was 1,281 million tonnes, data from the Central Dispatching Management (CDM) TEK; this is 0.7% higher than the average daily production in June.

Under the terms of the OPEC+ deal Russia agreed in may-July to reduce oil production by 2.5 million barrels per day to 8.492 million barrels.

Russian official statistics keep records of production in tonnes, whereas OPEC is considered to be in the barrels. If we convert 1.281 million tons to barrels according to the unified coefficient of 7.33, which is used for Urals export oil, then Russian oil and condensate production by the end of July were 9.39 million barrels per day, including gas condensate, compared to 9.32 million barrels per day a month earlier.

Based on data on daily production only on July 29, it is clear that oil producers by the end of the month slightly increased production (to 9.47 barrels per day), as from August 1, restrictions in OPEC+ are easing and Russia can restore production from this month by 0.5 million barrels per day, that is, up to 8.99 million barrels per day.

According to Russia's agreement with OPEC, gas condensate is not included in the quota for reducing production, but only oil. According to estimates, in May, Russia produced about 797 thousand barrels of condensate per day. Later, similar figures were provided by the International Energy Agency. If the volume of condensate production remained at the same level in July, oil production this month reached 8.59 million barrels per day, and the OPEC+ agreement was close to implementation. The Ministry of energy does not publish data on condensate production in Russia.

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