February 2, 2017 / 9:04 AM / 2 years ago

UPDATE 1-Russian oil output down 100,000 bpd in January after global deal

* Russian oil output down to 11.11 mln bpd in January
    * Pipeline oil exports up to 4.409 mln bpd last month
    * Russia pledged to cut oil output by 300,000 bpd by H1-end
    * All Russian majors cut oil output in January

 (Writes through, adds quotes, details)
    By Olesya Astakhova and Vladimir Soldatkin
    MOSCOW, Feb 2 (Reuters) - Russian oil output contracted in
January by 100,000 barrels per day, led by decline at all the
major domestic producers and  following a global accord aimed at
eliminating oversupply and supporting oil prices, Energy
Ministry data showed on Thursday.
    Russian output, one of the world's largest, declined for the
first time since August. The decrease showed that Moscow is
serious in its pledges to reduce production of oil, its chief
commodity exports and key supplier of budget revenues.
    January marked the start of planned output cuts by 11
members of the Organization of the Petroleum Exporting Countries
and other producers led by Russia under a deal reached on Dec.
10.
    Russian oil and gas condensate output declined to 11.11
million bpd from 11.21 million bpd in December. In tonnes, oil
output fell to 46.992 million from 47.402 million in December.
    Top Russian producer Rosneft cut output in January
by 0.5 percent month on month, Lukoil cut by 1
percent, Surgutneftegaz cut by 1.2 percent and Tatneft
 by 3.7 percent. 
    The data does not take into account production at
subsidiaries and joint ventures.
    Russian oil pipeline exports rose to 4.409 million bpd from
4.358 million. Moscow has said that the deal was related
exclusively to production, not exports.
    
    GLOBAL DEAL
    OPEC, Russia and other producers agreed to cut oil
production by a combined 1.8 million bpd in the first half of
2017. Russia pledged to reduce 300,000 bpd by the end of the
first half.
    A Reuters survey this week put compliance with the OPEC deal
at 82 percent, above the initial 60 percent achieved when a
similar deal was implemented in 2009. 
    Market watchers have focused on the level of compliance to
those promises as in the past the OPEC members have often failed
to stick to their pledges. 
    Russian Energy Minister Alexander Novak said on Wednesday
that global oil output was cut by 1.4 million bpd last month.
 
    Since Nov. 30, when OPEC announced a production target of
32.5 million bpd, oil prices have jumped by around a fifth to
$56.5 per barrel, comfortably above the $40 per barrel
average envisaged in Russia's budget for 2017.
    Novak has said he expects global oil prices at between $50
and $60 per barrel this year. He has said Russia aims to cut
production by 200,000 per day by the end of first quarter and
reduce it by 300,000 bpd thereafter.
        
    U.S. HELP NEEDED
    "Russia's approach to cutting would only foresee a gradual
decrease in production as of the end of Q1. Consequently, while
OPEC cuts seem to be well underway - asserting confidence in the
deal - there is still some way to go for non-OPEC," Vienna-based
JBC Energy said in a note on Wednesday.
    "Moreover, signals from the U.S. continue to indicate a more
rapid rebound in U.S. crude production, which could counter some
of the non-OPEC contributions to the cuts."
    Igor Yusufov, Russia's energy minister from 2001 to 2004,
and who oversaw Moscow's first deal with OPEC, told Reuters that
Russia and OPEC should bring the United States into the global
deal on oil output curbs as the U.S. was ramping up its
production.
    "The U.S. should be invited into the dialogue, the essence
of the current events should be explained to them... We are
partners and as two oil exporting countries we should coordinate
work on the supply volumes, take care of prices stability," he
said.
     A U.S. government report released Tuesday showed that crude
production in the United States rose for the second consecutive
month in November. 
    Russia and OPEC have said they were not worried by rising
production in the United States as an increase in output there
would be absorbed by rising demand. 

 (Additional reporting by Oksana Kobzeva; writing by Vladimir
Soldatkin; editing by Katya Golubkova and Jason Neely)
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