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Jakarta, CNBC Indonesia – Russia increased the production of oil and gas condensates in April to 46.45 million tons, equivalent to 11.35 million barrels per day (bpd), 0.53% more than in March, which was 11.29 million bpd. although this may reduce production in May.
Russian news agency Interfax reported oil production data based on information from the Russian Ministry of Energy. The report, which was also cited by CNBC International and Reuters, showed that the April figures were the exit or the highest monthly average production since January 2019, when Russian oil production penetrated 11.38 million bpd.
Reuters uses a ratio of 1 metric ton equal to 7.33 barrels.
The Organization of the Petroleum Exporting Countries (OPEC), along with Russia and other allied oil producers, or commonly called OPEC +, agreed last month to reduce their combined oil production to around 10 million bpd, or 10% of the global supply.
This cut in production will take place from May to June to face the fall of the world economy due to the impact of coronavirus or Covid-19, which has become a pandemic.
The United States (USA), Norway, Canada and Brazil will also contribute to this production cut, bringing the total reduction in oil production to 20 million bpd, or 20% of global supply, although Covid-19 causes the demand for this energy product to collapse by 30% and triggering the fall in price.
Russia is expected to reduce oil production by 2.5 million bpd of production baseline They are hitting 11 million bpd in May and June.
This figure excludes the production of very light gas condensate, or crude oil. The Russian Ministry of Energy did not disclose the production of gas condensate separately.
Tatneft production is reduced
In addition, on Saturday (02/05/2020), a medium-sized oil company in Russia, Tatneft also stated that they would produce 1,994 million tons of oil in April, down from last March, which was 2,442 million tons.
This reduction in production reached around 90,000 bpd, or 16% since March. It’s just that Tatneft’s management did not say the reason for the reduction. the exit in the last month
But according to sources and data processed by Reuters last week, Tatneft’s steps are known to be cutting departure-she because storage capacity is full, while demand in Europe is also weak.
The oil company, which operates in Tatarstan, central Russia, was previously a mainstay for the Red Bear country to produce oil. Even in the 1970s, Tatneft became the foundation of the country by producing 2 million bpd, helping the Soviet Union finance an arms race with the United States at the time.
Russia has vowed to fulfill its full commitment to cut production to cut global supplies so prices rise. As such the exit o Oil production is forecast to drop to between 480 million and 500 million tons, or 9.6 million to 10 million bpd this year, the first annual rate of decline since 2008.
Interfax also reported that Russia’s natural gas production in April reached 55.14 billion cubic meters, 14.3% less than in the same month the previous year. On the other hand, Russian oil exports increased 2.2% y / y (year after year) to 83.79 million tons in the period January-April 2020.
Referring to CNBC data, oil futures prices (futures) The West Texas Intermediate (WTI) type for delivery in June 2020, which became the benchmark for the US market. It was trading at $ 19.69 / barrel or was up 4.51% on Thursday (4/30). But in a way year to date, The price of WTI oil has fallen 66%. While Brent oil for Asian and European benchmarks at a level of US $ 26.44 / barrel, or less 58% on a basis year to date.
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