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Russian oil output below 10 million bpd for first time since 2009 - sources

Published 06/05/2020, 10:08
Updated 06/05/2020, 10:10
© Reuters. FILE PHOTO: A view shows a well head and a drilling rig in Irkutsk Region
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By Olesya Astakhova and Gleb Gorodyankin

MOSCOW (Reuters) - Russian oil and gas condensate production in the first five days of May fell to 9.5 million barrels per day (bpd), the first time it has dropped below 10 million since August 2009, sources familiar with the data told Reuters.

While the latest data showing production of 1.296 million tonnes per day, including gas condensate, has only been for a few days so far, it shows that Russia is following through on its pledge to reduce output under a global deal.

Russia's energy ministry did not immediately respond to a request for comment.

Russia's average monthly output fell to 9.97 million bpd in August 2009 but it had never been below 10 million since thanks to the launching of new fields, including Vankor, operated by the energy giant Rosneft (MM:ROSN).

Russian oil output has fallen as part of a global agreement between a group of leading oil producers, known as OPEC+, to cut supply to combat the fallout from the coronavirus, which has hit economic activity and demand for fuel around the world.

In April, Russia produced an average 11.35 million bpd. Reuters uses a ratio of 7.33 barrels per tonne to calculate the daily output in barrels.

Under the global pact, Russia has pledged to reduce its crude oil output in May and June by 2.5 million bpd from a baseline of 11 million bpd. The targets exclude gas condensate production which is typically about 700,000 to 800,000 bpd.

Last month, oil prices fell to their lowest in more than two decades due to the slide in demand during the pandemic combined with overproduction and a lack of crude storage capacity.

© Reuters. FILE PHOTO: A view shows a well head and a drilling rig in Irkutsk Region

Prices have since recovered slightly as some countries end coronavirus lockdowns and producers curb their supply. [O/R]

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