Russian oil production increased +1.5% m/m in March, gas production surged by 12% y/y

RUSSIA ENERGY / FINANCE - In Brief 05 Apr 2021 by Marcel Salikhov

CDU TEK published its preliminary production data for March. Oil & condensate production was restored by 0.15 mbd, to 10.25 mbd, after a decline in February 2021. Rosneft's results explain almost 2/3 of the monthly increase, but other majors have also shown positive dynamics. Growing external demand was a significant force driving oil production in March. Export of crude increased by 0.16 mbd (+3.8% m/m). The easing of OPEC+ terms allows Russian companies to increase output further in May 2021 by 60-70 thousand barrels per day.

Chart 1. Oil production and crude exports, January 2018 - March 2021

Source: IEF based on CDU TEK

We also note a strong growth in domestic demand for gasoline in February-March. More robust domestic demand is probably one reason for gasoline price increase which is a major headache for the Government.

We feared that the February decline might result from technical difficulties bringing back wells that were shut off due to OPEC+. But March results are somewhat optimistic. On an annual basis, oil production in March is almost 1 mbd (-9.3% y/y), lower than in March 2020. Detailed company-level data, which will be published later in April, will help to get more decisive evidence.

Chart 2. Gas production, 2018-2021

Sign-in
Forgot your password?
Copyright 2022 GlobalSource Partners. All rights reserved. This In Brief is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This In Brief is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this In Brief or its contents.