Russia’s Energy Minister Alexander Novak said oil production will probably drop next year due to global oil price reductions and end its ten-year growth trend. The very high level of compliance in maintaining production cuts witnessed by OPEC and Russia since last January have been the main drivers behind the strong recovery in the price of oil. Read this article about Russia’s Oil production will Decrease after 10 years of Nonstop Growth.
OPEC and other major Russian-led oil producers agreed this month to reduce production, given the fall in oil prices below $ 60 from over $ 80 in October.
Russia pledged to cut its production by 228,000 barrels a day from its record high of 11.41 million barrels.
“Russia’s oil production is set to rise to 200,000 bed/day to reach 556 million tons,” Novak said during a speech at the Russian-backed party coalition in the Russian House of Representatives.
Russia’s oil production has grown steadily since the start of 2008 when it fell in the wake of the global financial crisis and the fall in oil prices.
He added that production should be adjusted according to the agreement to reduce OPEC production, “I think we will reduce from 3 to 4 million tons, but largely depends on what we are doing.”
“The exact forecast is the amount of hardening. There are many doubts today. ”
Russia’s Oil production will Decrease after 10 years of Nonstop Growth.
The global oil price has fallen by more than 30 percent since early October, due to global oil production and global economic slowdown.
“The agreement for this month has prevented further price cuts,” Novak said. Now we can see the impact of this agreement. Prices have not dropped much. If there was no agreement, the price of oil would be very low. ”
Hansen stressed that OPEC and Russia perhaps have to maintain the cuts well into 2019 with the IEA expecting non-OPEC supply growth being enough to meet the rise in global demand until 2020.
we highlighted the risk that the oil market would potentially experience a correction because an oil price above 70$, in our belief, was unsustainable at this stage in the global oil market, according to the Saxo Bank’s expert.