Russia complies with OPEC oil output cut quota by 95.2% in April

Russia reduced oil production under the OPEC + agreement by 95.2% to its quota in April 2018, which is minus 300,000 barrels per day to the level of October 2016, Energy Minister Alexander Novak told reporters, TASS reports.

"The fluctuations in the production of liquid hydrocarbons in April were due to an increase in activities on PSA projects (production sharing agreements)," he said.

Thus, in April, Russia cut oil production by 285,600 barrels per day to the level of October 2016 (which was chosen as a benchmark level) when it was 11.247 mln barrels a day. (Novak specified the data for October earlier).

Russia committed to reduce oil production by 300,000 barrels a day, had been gradually heading towards this level since early 2017 and reached this level last May. Since than Russia consistently complied with the terms of the oil production cut deal. In certain months, Russia even managed to cut oil production above the required volume.

However, in March, Russia’s percentage of compliance with the OPEC+ deal was 93.4%. Then the failure to meet the quota was attributed to the increase in gas condensate production.