Date: 27 September 2021

Russia Pumps More Crude Oil

Russia’s crude oil output jumped in September thanks to some decisions made by OPEC+. However, it is vital for Gazprom to rebuild export capacities after a fire at a facility in Siberia.

SOURCE: RUSSNEFT.RU

The production of crude oil and condensate in Russia increased in the first weeks of September as some of the nation’s key producers ramped up in line with the OPEC+ deal and Gazprom recovered from the blaze at its facility in West Siberia. In early August, Gazprom’s processing facility near Novy Urengoy was damaged by a fire, forcing the producer to cap its regional output of natural gas and condensate. It was only in September that the company’s gas deliveries to Europe via the Yamal pipeline increased to the highest level since the end of July, indicating that the producer has been gradually bringing back production after the blast. The nation pumped an average of 1,456.9 thousand tons of oil, or 10.679 million barrels, per day in the first half of September, according to data from the Energy Ministry. This is 2.4 percent above August’s level. If that rate of production was maintained for the whole of September, it would be the biggest monthly increase in Russian production in just over a year. The gain was mainly driven by a 13.9 percent hike in production at Bashneft unit and an 11.9 percent increase in the output of smaller oil producers, which include Gazprom. OPEC states and its allies agreed to boost their production from August 2021 in response to growing global energy demand. While the alliance seeks to add 400,000 barrels a day to the market each month, concerns have mounted recently about whether some members of the group can meet their targets. Russia’s share of the increases is some 100,000 barrels a day. At the same time, the International Energy Agency said the extra supply from OPEC and its allies in August and September will be offset entirely by output disruptions like those in Libya (internal struggles) and the Gulf of Mexico (hurricanes). Global production should start growing again in October, it added.

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