(Bloomberg) -- Russia increased its oil production in February, yet likely pumped below its OPEC+ quota for a third consecutive month, constrained by a lack of spare capacity.
The country's inability to meet its output target adds further pressure to an already tight market, with crude surging to the highest since 2014, in the wake of Russia's invasion of Ukraine.
Regardless of challenges, the pact between the Organization of Petroleum Exporting Countries and its allies will continue, OPEC Secretary General Mohammad Barkindo said Tuesday, before the alliance's full ministerial meeting decides Wednesday on output in April. OPEC+ has so far signaled no change in its policy of adding an additional 400,000 barrels a day each month to the market.
Russia's Oil Exports Look Set to Retreat in Empty Loadings List
Russian oil producers pumped 42.23 million tons of crude oil and condensate in February, according to preliminary data from the Energy Ministry's CDU-TEK unit. That equates to 11.055 million barrels a day, based on a 7.33 barrel-per-ton conversion rate and is 0.2% higher than in January.
As the CDU-TEK data doesn't provide a breakdown between crude and condensate, a lighter type of oil excluded from the OPEC+ deal, it's difficult to assess Russia's compliance with the agreement. If the nation's condensate output last month was close to January's level of some 960,000 barrels a day, crude-only daily production was around 10.095 million barrels, some 132,000 below its quota for the month.
Russia is allowed to raise output by 100,000 barrels a day each month, a quarter of total OPEC+ increases, and expects to bring its oil production back to pre-pandemic levels by April or May, according to Deputy Prime Minister Alexander Novak.
Yet the nation's compliance with the deal rose to 109% in January from 107% in December, when Russia pumped below its quota for the first time since record OPEC+ cuts were enforced in May 2020, according to International Energy Agency's monthly reports.
©2022 Bloomberg L.P.
With assistance from Bloomberg
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