Russia’s Oil Exports to Decrease in September
Russia, one of the world’s largest oil producers, is set to reduce its crude exports by 300,000 barrels per day (b/d) in September. This is part of the country’s efforts to comply with the OPEC+ agreement to reduce global oil production.
Russia’s Oil Production
Russia is the world’s second-largest oil producer, with an average of 11.2 million b/d in 2020. This is second only to the United States, which produced an average of 12.2 million b/d in 2020. Russia is also the world’s largest exporter of crude oil, with an average of 6.3 million b/d in 2020.
OPEC+ Agreement
In April 2020, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed to reduce global oil production by 9.7 million b/d. This was in response to the sharp decline in global oil demand due to the COVID-19 pandemic.
Russia agreed to reduce its production by 2.5 million b/d, and has since been gradually reducing its production. In July 2020, Russia’s oil production was 10.2 million b/d, and in August 2020, it was 9.7 million b/d.
Russia’s Oil Exports to Decrease in September
In August 2020, Russia’s oil exports were 6.3 million b/d. However, in September 2020, the country is set to reduce its exports by 300,000 b/d. This is part of the country’s efforts to comply with the OPEC+ agreement to reduce global oil production.
The reduction in exports is expected to be mainly in the form of crude oil, as Russia is already exporting less refined products. In August 2020, Russia’s exports of refined products were 1.3 million b/d, down from 1.5 million b/d in July 2020.
Impact on Global Oil Markets
The reduction in Russia’s oil exports is expected to have a significant impact on global oil markets. The decrease in exports is likely to lead to a decrease in global oil supply, which could lead to higher oil prices.
In addition, the decrease in exports could lead to a decrease in global oil demand, as some countries may be unable to purchase oil from Russia. This could further reduce global oil supply and lead to higher oil prices.
Conclusion
Russia is set to reduce its crude exports by 300,000 b/d in September 2020, as part of its efforts to comply with the OPEC+ agreement to reduce global oil production. This reduction in exports is expected to have a significant impact on global oil markets, as it could lead to a decrease in global oil supply and higher oil prices.