Russian oil production falls in May to its lowest level in 11 months

Economy and stock exchange

Russia's oil production fell to 11.11 million bpd in May from 11.23 million barrels per day in April, its lowest level since June 2018 amid the polluted oil crisis and the global production cut agreement, data from the Russian Energy Ministry showed on Sunday..

The production of June 2018 was 11.06 million barrels per day; in tons, Russian oil production reached 47.004 million tons in May, compared with 45.975 million in April.

The drop in production is mainly due to oil pollution in Russia's Drogba pipeline, which was carrying 1 million barrels per day, or 1 percent of world oil demand. The pipeline, established in the 1960s, transfers Russian oil to Europe, including Germany, Hungary, Poland and Slovakia.

Russia expects to clean the pipeline in six to eight months.

The Organization of the Petroleum Exporting Countries (OPEC) has agreed with some major outside producers, led by Russia, to cut output by 1.2 million barrels per day (bpd) for six months from January 1, aimed at balancing the world oil market.

In this context, Russia has pledged to reduce production by 228 thousand barrels per day from the base level of the agreement, the production of October 2018, to reach 11.18 million barrels per day.

OPEC and Russia are expected to meet in Vienna later this month or in early July to discuss what they will do in the second half of the year.

Saudi Arabia, the largest oil exporter, increased production in May, but not to the extent that it would compensate for the drop in Iranian exports, which collapsed after the United States tightened restrictions on Tehran, a Reuters survey showed..

The 14-member group pumped 30.17 million barrels per day (bpd) in May, down 60,000 bpd from April, the lowest level of total OPEC output since 2015, according to a Reuters survey..

Russia's natural gas output last month was 63.28 billion cubic meters, or 2.04 billion cubic meters per day, compared with 64.3 billion cubic meters in April

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