If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it, According to the agreement of OPEC, the country will reduce oil production by 10% from 561 million tons to 510-520 million tons. (Photo by Mikhail Svetlov/Getty Images). The output was 560 million tons (11.3 million barrels a day) reaching its highest level in the post-Soviet era. Not all of that may end up in international markets because the Energy Ministry advised oil companies to process additional August output domestically to satisfy growing demand. In addition, the new cuts won’t begin until May, allowing oil supplies to increase. The Saudis have been engaged in a price war with Russia after Moscow refused to go along with a Saudi proposal in early March to trim output to address a sharp drop in demand because of the coronavirus pandemic. Possible further trims could come from a meeting of the Group of 20 nations on Friday. “OPEC-plus is simply codifying what they would have had to cut anyway.”. Citigroup is fined $400 million over ‘longstanding’ internal problems. Have a confidential tip for our reporters? The International Energy Agency (IEA) ranked Russia last year as the world’s second largest producer of crude oil after the United States. Starting this month, Russian producers can increase crude oil output by 500,000 barrels a day to 8.99 million a day. With storage space “running out, at some point everyone is going to cut production,” he said. The reductions for May and June were smaller than some investors and analysts had expected, and oil prices gave up earlier gains. 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Russian exports up to five million barrels per day. My work has appeared in The Boston Globe, The Nation, Salon and USA Today. The export volume increased by almost 3 %, despite the contamination of the Druzhba oil pipeline in April that restricted supplies for several weeks. In addition, a group known as OPEC + demanded that countries such as Nigeria and Iraq, which exceeded production quotas in May and June, offset further reductions in July-September. (Photo by Dmitry Serebryakov\TASS via Getty Images). A progressive recovery takes place through the second half of 2020. OPEC and the other oil-producing countries agreed to cut 10 million barrels a day — about 23 percent of their production levels — in May and June, they said in a statement on Friday. Updates with Energy Ministry’s comment in penultimate paragraph. As we reported before, Producers of the OPEC+ group and their allies, including Russia, came to an agreement: the production of oil will be cut by more than 20 percent. Russia Crude Oil Production is at a current level of 8.925M, down from 8.993M last month and down from 10.76M one year ago. ‘Jurassic’ filming pauses after positive coronavirus tests. Also read: OPEC+ Prepares to Pump More Oil Just as Market Recovery Teeters. Latest Updates: The Coronavirus Outbreak and the Economy. Novatek, Russia’s largest independent natural gas producer, is down 31%. In its February forecast update, Russia’s finance ministry said it expects the volume of crude oil exports to increase by nearly 2 % this year, but then decline slightly in following years. The group will be returning supply at a time oil’s recovery has faltered with coronavirus infections still surging in many parts of the world, and new cases emerging in Asia and Europe. Russia’s Energy Minister, Alexander Novak, told Russian business daily Kommersant that countries will have no obligation to reduce oil output after April 1. Values are presented in bbl/day (Barrels Per Day). The meeting was called by Saudi Arabia, OPEC’s de facto leader, after President Trump spoke to Crown Prince Mohammed bin Salman, the kingdom’s main policymaker. On another note, oil futures are already getting clobbered out of the gate with Brent crude trading around 20% lower thanks to the failed OPEC deal and the onslaught of coronavirus running through Europe. The decision to cut might go some way toward assuaging growing tensions between members of the cartel and the United States.