(Oil Price)– Russia has raised its oil production close to the ceiling in the OPEC+ deal, Russian Deputy Prime Minister Alexander Novak said on Wednesday.
“Production is growing… Just as we are unable to decrease it quickly, we are increasing it steadily. We will fulfil our quota,” Russian news agency Interfax quoted Novak as saying.
Russia’s oil production in August was about 90,000 barrels per day (bpd) below its OPEC+ quota.
Russia’s oil production averaged 9.173 million bpd in August, compared to the 9.259 million bpd ceiling in the OPEC+ deal, which also takes into account Moscow’s compensation for previous overproduction.
For September, Russia is allowed to produce 9.415 million bpd under the agreement, including compensation, which reduces its quota.
Asked about the September output, Novak said that “We were close to or on roughly the same level as the quota,” Interfax reported.
Russia stopped reporting production numbers after the invasion of Ukraine and OPEC and analysts rely on sources and vessel-tracking data to estimate the Russian oil production and supply levels.
Last month, reports emerged that Russia’s oil producers may have to reduce output as intensified Ukrainian drone attacks have damaged critical export and port infrastructure.
State pipeline firm Transneft, which handles more than 80% of all the crude oil pumped in Russia, has warned producers that it may have to accept lower volumes on its system, industry sources close to Russian oil producers told Reuters in the middle of September.
At the same time, Russia extended the ban on gasoline exports and introduced a ban on non-producers to export diesel by the end of the year.
The extension of the gasoline export ban and the introduction of a diesel export ban for trading companies is not surprising, as fuel shortages have emerged amid intensified Ukrainian drone attacks on Russian refineries and other energy infrastructure.
Russia has not commented on the extent of the damage done by Ukrainian drones, but various reports have said that at least 10 refineries have been targeted with drones by Ukraine, and some of them have sustained damages and had to temporarily halt crude intake.
By Michael Kern for Oilprice.com
