UK markets open in 1 hour 7 minutes

Russia close to hitting OPEC+ oil output target in May - sources

Olesya Astakhova and Gleb Gorodyankin
FILE PHOTO: A view shows a well head and a drilling rig in the Irkutsk Oil Company-owned Yarakta Oil Field in Irkutsk Region

By Olesya Astakhova and Gleb Gorodyankin

MOSCOW (Reuters) - Russia's oil and gas condensate production fell to 9.39 million barrels per day (bpd) in May, close to its target under a global deal to reduce output, sources familiar with the data told Reuters.

That was down from 11.35 million bpd in April and 9.42 million bpd from May 1-19.

Under the agreement between Russia and the Organization of the Petroleum Exporting Countries, a group known as OPEC+, Moscow has pledged to reduce its output by around 2.5 million bpd to 8.5 million bpd to help support oil prices. The deal does not include output of gas condensate, a light oil.

Russia usually produces 700,000-800,000 bpd of gas condensate.

That means that excluding gas condensate, Russia produced 8.59-8.69 mln bpd of crude oil in May.

The energy ministry declined to comment.

OPEC+ agreed to cut its combined output by around 10 million bpd, or 10% of global oil production, in May and June, with a subsequent easing of the reductions.

Two OPEC+ sources told Reuters on Monday that OPEC and Russia were moving closer to an agreement on extending current output cuts and were now discussing a proposal to rollover supply curbs for one to two months.

OPEC+ may hold an online conference as early as Thursday to discuss its policy, compared with the original schedule of next week.


(Reporting by Olesya Astakhova and Gleb Gorodyankin; Writing by Alexander Marrow and Vladimir Soldatkin, editing by Louise Heavens and Mark Potter)