Production of liquid hydrocarbons (HLH) in Russia at the end of 2023 decreased by 110 thousand barrels per day, to 10.92 million b/d, as indicated in the February report Organization of the Petroleum Exporting Countries (OPEC). In the organization’s previous report predicted volumes of oil and condensate production in Russia in the amount of 10.78 million bpd. The production estimate was thus increased by 140 thousand bpd.
OPEC estimates the production of liquid hydrocarbons in Russia in December 2023 at 10.8 million bpd, which is 90 thousand bpd less than the November result. It is indicated that in December, 9.5 million b/d of oil and 1.3 million b/d of other liquid hydrocarbons were produced.
According to the report, in 2024 in Russia the production of liquid hydrocarbons is projected to decrease by 80 thousand b/d, to 10.84 million b/d. Previously, OPEC analysts expected production at 10.77 million bpd, therefore, the production forecast was increased by 70 thousand bpd.
On November 30, following the OPEC+ meeting, exporting countries agreed to voluntarily reduce oil production by 2.2 million barrels per day at the beginning of 2024. The reduction is necessary to achieve balance in the oil market during the period of seasonal decline in demand. On the same day, Russian Deputy Prime Minister Alexander Novak said that the country would reduce oil exports to 500 thousand b/d (300 thousand b/d of oil and 200 thousand b/d of oil products) until the end of the first quarter of 2024.
Read more about the impact of the conflict in the Middle East on oil prices in the material “Easy to rise oil”.