Russia’s crude oil and condensate production has recorded a slump for the first time since the 2008 crisis due to the Covid-19 induced global oil production dip and OPEC+ production cut deal. The oil price in the country has also been hampered by the pandemic.
It is reported that the country’s annual oil production recorded an 8.6 percent slump to 10.27 million barrels per day (bpd) last year, down from a record surge in 2019. Furthermore, Russia’s oil production has reached its lowest level since 2011. However, the country’s oil production slump was not unexpected considering the global demand downturn and the new OPEC+ alliance deal.
Russia along with the Kingdom of Saudi Arabia was compelled to slash the most under in accordance to the fresh agreement after failing in March last year to initially find common ground on how to tackle the global oil demand downturn and oil price slump. Russia’s slump in oil production comes after hitting the production record for two consecutive years.
The country’s crude oil and condensate production has hit a record high in 2019, marking the highest level since the post-Soviet era despite the government’s key role in supporting the production cuts of the OPEC+ coalition.
It is reported that Russia produced 11.25 million bpd of crude oil and condensate in 2019 compared to 11.16 million bpd the year earlier.
The global oil market is still scrambling for profits and is expecting a rebound this year. However, the oil market situation remains critical unless the pandemic is brought under control.