Russia cuts oil output further in February to comply with Opec pact

Russia’s oil producers cut their output deeper in February as the nation strives to implement an agreement with OPEC following criticism that it was moving too slowly.

The country produced 43.3 million tons of oil last month, according to preliminary data from the Energy Ministry’s CDU-TEK unit. That’s equivalent to 11.336 million barrels a day, down 82,000 barrels per day from the October baseline of the OPEC+ deal, Bloomberg calculations show.

Russia’s Energy Ministry earlier this week said February output was 97,000 barrels a day lower than in October. Bloomberg’s calculation of the country’s cuts also differed from official figures in January. The difference may be explained by the methodology, as the ministry uses an individual conversion ratio from tons to barrels for each field, while Bloomberg uses a unified ratio of 7.33 barrels a ton.

The nation curtailed its January supply by about 47,000 barrels a day from the baseline, according to the Energy Ministry. 

Russia pledged to gradually implement a 228,000 barrel-a-day reduction and maintain it until the end of the first half.

While members of the Organization of Petroleum Exporting Countries have largely stuck to their output caps, compliance among their non-OPEC allies, of which Russia is the biggest, has been less strict. Nevertheless, Russia remains committed to its obligations and will reach the targeted level of cuts by early April, Energy Minister Alexander Novak said this week in an interview with Gazeta.Ru.

The nation’s largest producers, who met with Novak to discuss the OPEC+ pact, said Friday they are cutting their output in line with the ministry’s requirements. “We said we are fully complying, the work is being done,” Pavel Fedorov, Chief Financial Officer for Russia’s largest oil company Rosneft PJSC, said after the meeting.