Russia slightly increases oil output and exports
Last month, Russia’s crude production and exports rose by 2% and 8,5% respectively month on month, as the country’s oil industry is regaining momentum. Russia’s crude production quota under an OPEC + deal has gradually increased since February with further growth scheduled for May.
Russia’s daily average oil production increased by 2% month on month in April, reports S&P Global Platts. Preliminary data released by the Russian Ministry of Energy’s Central Dispatching Department of the Fuel and Energy Complex on 2 May reads that the country produced 42,81 million tonnes of crude and condensate last month, equivalent to around 10,46 million bpd, while in March, production amounted to 43,4 million tonnes (10,26 million bpd).
By comparison, in April 2020, Russia produced 46,41 million tonnes (11,34 million bpd). Lower output volumes compared to 2020 are attributed to significant crude production cuts under an OPEC+ agreement aimed to soften the impact of the coronavirus pandemic. However, Russia has secured gradual increases to its output quota this year. In August-December 2020, the quota totalled 8,99 million bpd, while from April, it increased to 9,379 million bpd. The OPEC+ agreement doesn’t cover condensate production, which usually accounts for around 8% of overall output.
As for exports of Russian crude, they totalled 17,32 million tonnes (4,23 million bpd) last month. This was up by 8,5% compared to March volumes of 3,9 million bpd but down by 17% on April 2020 when exports amounted to 5,08 million bpd. On the contrary, domestic deliveries slightly decreased month on month but rose by 5% compared to April 2020.
Meanwhile, Minister of Finance Anton Siluanov urged higher taxes on the natural resource sector. “We need to stimulate the new economy, as we see that the resource economy will be gradually replaced by new economic patterns,” he said adding that other sectors, such as technology and small businesses, might receive tax breaks. According to the minister, the overall effect of any tax changes should be neutral for the economy. Last year, Russia already increased the tax burden on the mining, tobacco and oil industries and raised taxes for individuals with annual incomes of more than $66,626. Earlier in April, President Vladimir Putin said that the corporate sector was on course for record profits, which raised the prospect of “the possible fine-tuning of tax legislation at the end of the year”.