Russia’s oil output falls in Feb, below OPEC+ quota increase – Bloomberg
|Russia’s crude oil production dropped in February, below its OPEC and allies (OPEC+) oil-output target for the first time since the historic curbs began last May, Bloomberg reports, citing preliminary data from the Energy Ministry’s CDU-TEK unit.
Additional takeaways
“The nation produced 38.56 million tons of crude and condensate in February. That equates to 10.095 million barrels a day, based on a 7.33 barrel-per-ton conversion ratio.”
“February, Russia’s first month of over-compliance with the deal, brought abnormally cold temperatures. The nation’s crude pipeline operator, Transneft PJSC, regularly recorded lower crude flows at some Siberian intake points over the month, citing frigid weather as one of the reasons.”
“Russia and close oil ally Kazakhstan were allowed to produce more in February and March under the deal reached between the Organization of Petroleum Exporting Countries and its partners. Russia’s quota rose by 65,000 barrels a day in February, and will do so again this month.”
Market reaction
Amid broad risk aversion, WTI drops 1% to test the $60 mark, shrugging off the upbeat Russian oil output data.
Reports that the OPEC+ is looking to increase oil output at its March 4 meeting keep the oil traders overwhelmed.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.