(Bloomberg) — Russia’s oil production rose to a post-Soviet high last month as the country completely rolled back the output cuts it had agreed on with OPEC, then pumped some more.
Russia’s June agreement with OPEC to boost supplies amid climbing prices.
OPEC itself raised output by 30,000 barrels a day last month as deepening losses in Iran were countered by other members, a Bloomberg survey showed.
Russia’s production exceeded the previous high of 11.247 million barrels a day reached two years ago. That shows the country has completely erased its 300,000-barrel-a-day cut agreed on with the Organization of Petroleum Exporting Countries in 2016, and has added over 100,000 barrels a day more.
“No surprise about Russia’s growth in capacities during the cutback, as investment continued apace, and so did upstream activity,” said Matthew Sagers, managing director of Russian and Caspian energy research at IHS Inc. “This has created an ‘overhang’ that will be further tapped in 2019.”
The nation’s production next year may increase by an average of 300,000 barrels a day, excluding seasonal factors, according to Sagers.
Energy Minister Alexander Novak said last month that the country had spare capacity to add more barrels if needed — “a few hundred thousand barrels” — yet a specific amount would depend on the marke