Russia's output fell by the most since the cuts last month** and kept its promise to cut exports in the first week of the new year. India intends to buy more Saudi ** to make up for ** losses.
According to Bloomberg's calculations based on official data, Russia's cut to production in December was the largest since the start of the cut in early 2023, but the country's production was the largestThe target level is still exceeded
People familiar with the data from the Ministry of Energy said that Russia's average daily production last month was 13060,000 tons. Since the data is not publicly available, the people asked for anonymity. By 7 per ton33 barrels of conversion rate calculations, which equates to 9.57 million barrels per day.
Bloomberg's calculations show that this means:Russia's ** production in December was nearly 60,000 barrels per day lower than the previous month and about 3750,000 barrels, the biggest drop since March。Russia had previously pledged to reduce production by 500,000 barrels per day by the end of the year.
Russia's energy ministry declined to comment on the data. Russia classified its oil production data as sensitive last year due to Western sanctions.
The department does not disclose its conversion ratios, nor does it disclose the production baselines it uses to assess compliance, so internal calculations may differ from those of Bloomberg.
Russian Deputy Prime Minister Alexander Novak said at the end of last month that "Russia is a responsible participant in the OPEC+ production cut deal." We have fulfilled our obligations. ”
In addition to limiting production, Russia has also pledged to reduce oil exports by 300,000 barrels per day by December and increase the cuts to 300,000 barrels per day in the first quarter of this year, including a 300,000 barrel per day reduction in exports and a 200,000 barrel day reduction in refined oil exports to curb the oil surplus.
In the first week of 2024, Russia kept its promisesOil exports averaged 3.28 million barrels per day, down 300,000 barrels per day from May-June 2023 (reference level) and down 500,000 barrels per day from the week ending December 31.
As the West strengthens its oversight of the implementation of sanctions on the Russian oil ceiling, India's imports to Russia have been blocked, which may also have affected Russia's exports.
After Saudi Arabia lowered the official selling price of the main export ** grade in FebruaryIndia plans to increase Saudi imports
India's largest refiner, Indian Oil Corporation (IOCNS) and Bharat Petroleum Company (BPCL.).NS) is considering a move from Saudi Aramco (2222.) in FebruarySE) to purchase an additional 1 million barrels of oil.
Saudi Aramco typically notifies Asian buyers of its monthly** allocations by the 10th of each month.
Indian Oil Corp. did not respond to Reuters' email seeking comment, while Saudi Aramco declined to comment.
One of the sources said that the Indian oil company is seeking more oil from Saudi Arabia and West Africa, as a resultThe company is facing payment issues for the purchase of Russian low-sulfur light**sokol
India, the world's third-largest importer and consumer of oil, has been importing heavily at Russian discounts after Western countries refused to buy oil from Moscow. Data obtained from *** show that this has led to Russia becoming the largest oil ** country in India, and Iraq and Saudi Arabia being squeezed into second and third place.
Last month, the U.S. imposed sanctions on ships and ship operators of Russian oil above the $60 per barrel cap set by the Group of Seven (G7) and tightened relevant regulations, including increased scrutiny by banks and service providers to ensure cargoes do not violate the cap.
Amid tighter sanctions, several tankers destined for Sokol** to India have been diverted in the past two months, sending India's oil imports from Russia in December to an 11-month low.
India's Oil Minister Hardeep Singh Puri recently said that India's reduction in oil imports from Russia is due toLack of appeal, not a payment issue.
Under an annual agreement with Rosneft, IOC used to receive 6 to 7 ships of Sokol** per month. The refiner may ask for additional ** to cover the loss of Russian oil under regular agreements with West African oil producers Nigeria and Angola, the sources said.