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Russia’s Crude Oil Production Was Flat in September 2017

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Oct. 3 2017, Published 9:19 a.m. ET

Russia’s crude oil production

Russia’s crude oil production was flat at 10.91 MMbpd (million barrels per day) in September 2017—compared to the previous month. The production is at a 13-month low due to major oil producers’ production cut deal.

The production also fell due maintenance work in ExxonMobil’s (XOM) Sakhalin-1 project in September 2017. Any fall in Russia’s crude oil production is bullish for crude oil (BNO) (USO) prices.

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Russia’s major oil producers 

Rosneft is Russia’s largest oil producer. Its crude oil production rose 1.2% to 3.82 MMbpd in September 2017—compared to the previous month. Lukoil’s crude oil production rose 0.7% to 1.64 MMbpd during the same period.  

Russia’s oil exports through oil pipelines 

Russia’s oil exports through oil pipelines fell by 40,000 bpd (barrels per day) to 4.30 MMbpd in September 2017—compared to the previous month. A fall in Russia’s oil exports is bullish for crude oil (BNO) (UWT) prices. Higher crude oil prices have a positive impact on oil producers’ (XLE) (IXC) earnings like Rosneft, Saudi Aramco, Apache (APA), and Denbury Resources (DNR).

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Crude oil production estimates

Russia’s crude oil production averaged ~11.0 MMbpd in 2016. It’s the highest level in the last 30 years. Market surveys estimate that Russia’s crude oil production could average 11.1 MMbpd in 2017.

Production cut deal

Russia agreed to cut its production by 300,000 bpd or ~3% from January 2017 until March 2018 due to the production cut deal. Russia’s crude oil production has fallen 3% since major oil producers’ production cut deal.

Impact

Russia is the largest crude oil producer in the world. Any fall in Russia’s crude oil production and exports could support crude oil (DWT) (BNO) prices.

In the next part, we’ll discuss some crude oil price forecasts.

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