Russia curbs crude oil production while pumping over target in December 2023
(Bloomberg) – Russia curbed its crude oil production in December by the most since starting its cuts in early 2023, yet the nation still pumped more than its target, according to Bloomberg calculations based on official data.
Daily crude production averaged 1.306 million tons last month, said people familiar with data from the Energy Ministry, who spoke on condition of anonymity because the figures aren’t public. That equates to 9.57 MMbpd, based on the typical 7.33-bbl-per-ton conversion ratio for the nation’s oil.
That means Russia’s crude output in December was almost 60,000 bpd lower than the prior month and some 375,000 bpd below the February baseline for its production curbs, Bloomberg calculations show. Russia has pledged to reduce its crude output by 500,000 bpd until the end of this year.
Russia’s Energy Ministry declined to comment on the figures. The nation classified its oil production data last year due to its sensitivity amid Western sanctions over the Kremlin’s war in Ukraine. The ministry doesn’t disclose its conversion ratio nor the baseline it uses for its own assessment of compliance, so its internal calculations may differ from those made by Bloomberg.
“Russia is a responsible participant of the agreement” with OPEC+ to cut production, Deputy Prime Minister Alexander Novak said at the end of last month. “Our companies fulfill their obligations.”
On top of the output curbs, Russia had also pledged to reduce its overseas oil shipments by 300,000 bpd until December, then deepen the reduction in the first quarter in a joint effort to prevent a surplus with its allies in OPEC+.
From January to March, Russia will curb its daily exports of crude by 300,000 bbl, and refined products by 200,000 bbl.
