In November oil production in Russia declined

© AP Photo / Hasan JamaliДобыча oil. Archival photoIn November oil production in Russia declined© AP Photo / Hasan Jamali

Average daily oil production in Russia in November 2018 grew in annual terms by 3.9%, but month-on-month, in contrast, decreased slightly by 0.4% to 11,369 million barrels a day, according to Bloomberg, citing data from the Central dispatching Department of fuel energy complex (CDU TEK).

The decline occurred on the eve of the OPEC meeting+ in early December, which, as expected, countries decide whether they need to resort again to reduce oil production, but in 2019. In the framework of the agreement OPEC+ Russia produced 422 thousand barrels per day above its target level, follows from the data of the Agency.

OPEC and several non-organisation countries (OPEC+) agreed in late 2016 in Vienna on the reduction of oil production to 1.8 million barrels per day from the level of October 2016, of which 300 thousand were in Russia. Oil production in Russia in October 2016 was $ 11,247 million barrels per day. From this level, Russia has reduced oil production by 300 thousand barrels per day, up to 10,947 million barrels per day.

The contract started from the beginning of 2017 and has been extended until the end of 2018. In June 2018 OPEC+ agreed goal is to escape from the fulfillment of the terms of the agreement, which then accounted for 47%. However, in recent years the market has intensified fears of «oversupply» of raw materials in the year 2019, and on this background there was a sharp drop in oil prices.

On Saturday, Russian President Vladimir Putin said that Russia and Saudi Arabia have agreed to extend the agreement OPEC+, but there is no understanding of volume. And the Minister of energy of Russia Alexander Novak said that the approaches to the future of the agreement OPEC+ to be agreed in the coming days, before the conference in Vienna.

The Agency also reported that the average daily export of oil from Russia in November fell by 4.8% month-on-month, amounting to 5,592 million barrels per day. Natural gas production in Russia increased in November by 2.7% in annual terms — up to 62,671 billion cubic meters.