Russia’s crude oil output last month was well below its OPEC+ quota, as the country struggled to find buyers for its sanctioned barrels and Ukrainian drone attacks hampered refineries.
An average 9.43 million barrels a day were pumped in November, according to people with knowledge of the data, who asked not to be identified discussing confidential information. While that was 19,000 barrels a day above the October level, it lagged the nation’s November target by more than 100,000 barrels a day, Bloomberg calculations show.
That’s also the most that Russia’s actual reported production has lagged its monthly OPEC+ quota, including compensation cuts, in over two years. It’s another sign that Moscow faces a challenge in offloading its oil, a key source of revenue that the Kremlin uses to fund its war with Ukraine.
Russia had historically been one of the biggest laggards in complying with OPEC+ output agreements, pumping above the targets, and even had to make additional cuts to compensate for overproduction. The final cuts were made in October, according to the Organization of Petroleum Exporting Countries.
US sanctions that hit oil giants Rosneft PJSC and Lukoil PJSC have in recent weeks reduced appetite for Russian barrels in key buyer India. Still, traders and refiners have said that volumes could rebound as unsanctioned suppliers and new trading intermediaries appear.
The difficulty in finding buyers has led to the amount of Russian oil on water growing. In addition to vessels idling for long periods, some are taking longer voyages.
Drone Attacks
Meanwhile, Ukraine carried out record attacks on Russian refineries last month, pressuring crude-processing volumes as refinery owners rushed to repair infrastructure. The two sides are fighting an increasingly intense energy war as they attempt to gain a meaningful advantage as peace efforts drag on.
The Energy Ministry didn’t immediately respond to a request for comment on the production data for November.
Deputy Prime Minister Alexander Novak in October said that Russia has capacity to raise oil production further, but will do so gradually, according to Tass news service. He last month said that November data showed that output has been growing and felt no impact from the latest sanctions, according to Interfax.
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