Market Balance: Russia Set to Reduce Crude Oil Exports By 500,000 bpd In August

Russia’s crude oil exports will be reduced by 500,000 barrels per day (bpd) in August in order to maintain a balanced market, Russia’s Deputy Prime Minister Alexander Novak said on Monday.
The senior Russian oil official did not provide any data for Russian production and exports in August, nor did he specify the baseline from which the decrease would be made.
According to Novak’s office, the August export restriction would result in an extra 500,000 bpd drop in oil output.
The Russian declaration came only minutes after Saudi Arabia announced that it will extend its unilateral 1 million bpd oil output reduction into August.
After extending the voluntary cut into next month, Saudi Arabia will produce roughly 9 million bpd in both July and August.
Saudi Arabia stated today that additional voluntary cut comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of the oil market.
Russia, for its part, has seen strong crude oil shipments – far greater than expected last year – despite Western sanctions and a price ceiling on its crude and petroleum products. China and India are buying up cheap Russian barrels, and Russian exports for much of June were still roughly 250,000 bpd higher than in February, serving as a basis for Russia’s anticipated 500,000-bpd output drop this year.
Today’s nearly simultaneous announcements from Russia and Saudi Arabia are notable, as Saudi Energy Minister Prince Abdulaziz bin Salman stated in early June, referring to Russia, “We discussed with Russia the issue of its production and asked it to clarify its data, and we have strengthened the concept of transparency with Russia about its oil production figures.”

Source: Allnews Nigeria

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