Friday, June 9, 2023
HomeHeadlinesRussian crude production plunges by nearly 9% in April


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Russian crude production plunges by nearly 9% in April

Russian crude output in April fell by nearly 9% from the previous month, an internal OPEC+ report showed on Tuesday, as Western sanctions on Moscow following its invasion of Ukraine hit the top oil producer.

Russia’s oil output stood at 9.16 million barrels per day (bpd) in April, according to data from secondary sources collated by OPEC+, down about 860,000 bpd from March and nearly 1.2 million bpd below its OPEC+ ally Saudi Arabia’s output.

That is the steepest fall in the country’s output since the one that unfolded after the collapse of the Soviet Union in the 1990s and has left Russian production 1.28 million bpd below the level required under an oil production cut agreement between the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+.

Despite missing production targets and selling barrels at a discount, the recent surge in crude prices pushed Moscow’s oil and gas revenue to 1.81 trillion roubles ($27.92 billion) in April, compared to a total 2.97 trillion roubles for the first three months of the year, according to the finance ministry.

European Union members are negotiating a proposed oil embargo on Russia, but talks failed this week because of a veto from Hungary, which is heavily reliant on Russian oil imports.

The ban proposed by the European Commission in early May would be its harshest sanction yet in response to Moscow’s Feb. 24 invasion of Ukraine but also includes carve-outs for EU states most dependent on Russian oil.

Meanwhile, Russia has boosted sales of oil to China and India as it grapples with Western sanctions on its financial sector and a standoff over its demand that EU countries pay for energy in roubles.

Moscow may see its oil production plummet by as much as 17% in 2022, an economy ministry document seen by Reuters showed last month, as the country struggles with the sanctions.

Moscow calls its invasion of Ukraine a “special military operation” to rid the country of fascists, an assertion Kyiv and its allies say is a baseless pretext for an unprovoked war.

Overall, OPEC+ produced 2.6 million bpd below its targets in April, the data showed, with overall compliance with cuts rising to a record 220% from 157% the previous month.

West African producers Nigeria and Angola, which have been struggling in recent years with capacity constraints, produced 413,000 bpd and 290,000 bpd below targets, respectively, in April, the data showed.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Trafigura publishes 2023 interim results showing a strong performance

Trafigura, a market leader in the global commodities industry, released its 2023 Interim Report today for the six-month period ended 31 March 2023. The results...

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

Celestyal Participates In Promotion Of The Tourist Destination Of Central Macedonia

Celestyal, the award-winning, number one choice for travellers to the Greek Islands and the...

Capesize, panamax gains drive Baltic index higher

The Baltic Exchange’s main sea freight index rose for a fourth straight session on...

Baltic rises to over 3-month peak on firm demand for larger vessels

The Baltic Exchange’s main sea freight index rose on Wednesday to scale its highest...

Baltic index logs best day in nearly 3 months

The Baltic Exchange’s main sea freight index posted its biggest single-day gain since mid-March...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Iraklio port tender set for another delay

The opening of the binding financial offers for 67% of Iraklio Port Authority had been scheduled for Thursday, but this is no longer expected...

APM Terminals extends concession of Kalundborg container terminal

APM Terminals has reached an agreement with the Port of Kalundborg to extend the concession of Kalundborg container terminal by 10 years to 2033. In...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...