Neftegaz.RU #3-17 ENG

RUSSIA
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JMMC discussed the implementation of
commitments to reduce oil production
Russia reduced oil production by
185 thousand barrels a day
NOT QUANTITY,
BUT QUALITY
Anna Pavlikhina
On March 26, the ministers of OPEC and non-
OPEC (JMMC) countries met for the second time to
discuss the fulfillment of the obligations to reduce oil
production. It was observed that countries abide by
their voluntary commitments. Thus, OPEC countries'
oil production declines for the second month in the row
and as a whole has reached 94% of the reduction level
agreed.
Russia has now reduced oil production by 185
thousand barrels per day in comparison with October
2016. By the end of April, Russian companies should
reduce the production to 300 barrels per day, i.e. to
the level fixed in the agreement. This bar will be kept
until the middle of the year, i.е. until the revision or
extension of the agreement.
However, against the background of the reduction
in production, the increase in stocks of crude oil
was observed. This is associated with seasonal
factors, such as planned repairs at processing plants.
However, experts consider this phenomenon to be a
temporary one and argue that when repairs at the oil
refinery are over, the efforts of extractive companies to
stabilize the market will pay off in full.
However, companies may not wait for remuneration.
On the one hand, oil producers have not lost anything
yet, because a decrease in production does not mean
a decrease in exports. According to K. Molodtsov,
Russian extractive companies are just going to
increase the volumes of supplies in the first half of
the year. Thus, for the first month of 2017, Russia
has increased its oil exports by 4.8% - up to 20.124
million tons, while earning 68.4% more than usual.
The Russian budget also only benefited from the
maneuver.
On the other hand, shale oil is not under the
production limitation, from which in all logic the United
8 ~ Neftegaz.RU [3]