Russia Oil Output Sets Record

Russia Oil Output Sets RecordRussia Oil Output Sets Record

Russian oil output jumped by almost 4% in September from the previous month to 11.11

million barrels per day, a new post-Soviet record-high, as companies ramped up drilling amid improved oil prices, Energy Ministry data showed on Sunday.

The oil output rose amid the talks between the leading global producers, including Russia, to curb production in order to support oil prices, depressed by oversupply, Reuters reported.

Russian Energy Minister Alexander Novak said on Friday that Russia will find mechanisms and instruments needed to freeze oil production should the country reach an agreement with OPEC on limiting output.

His comments were aired as OPEC agreed on Wednesday modest oil output cuts in the first such deal since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices.

In tons, Russian oil output reached 45.483 million versus 45.309 million in August. Last month, oil output in million barrels per day stood at 10.71.

 The rise was led by world's top listed oil producer, Rosneft , whose output rose by 2.6% month-on-month, as well as Gazprom Neft, which showed a 5.2% jump in production last month.

Oil prices have been volatile recently and broke through the $50 per barrel mark last week for the first time since July after the OPEC deal. It fell to as low as $27.88 in January, spurring talks over global output freeze.

The jump in Russian production comes not only thanks to conventional oil deposits but also as Kremlin oil champions Rosneft and Gazprom Neft are increasing output of hard-to-extract oil, despite western sanctions on Russian shale projects.

 Analysts from Swiss bank UBS forecast a rise of 2.7 % next year in Russia's overall oil production.

 Russia's oil production peaked at 11.41 million bpd in 1988 when it was still part of the former Soviet Union, according to the International Energy Agency. Russia accounted for 90% of Soviet output.

Natural gas production in Russia was at 51.33 billion cubic meters last month, or 1.71 bcm a day, versus 45.29 bcm in August.

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