Oil production in Russia has dropped to the lowest level in the past 3 years

At the beginning of July, the production of oil in Russia has dropped to the lowest level in 3 years

The decrease was mostly drawn by lower production of Russia’s biggest producer Rosneft. The amount of produced oil was 10.79 million barrels daily, which constitutes a significant drop compared to 11.15 million barrels in June. This means the production was lowest from August 2016 (10.71 million barrels daily).

According to Reuters’ information from Russian industrial groups, production drop has been stated by Rosneft company, in average at 11 percent daily. The drop follows a detected oil contamination of Ural oil in April. The oil supplies through Druzhba pipeline must have been suspended, but since then they have been partially restored.

Rosneft has explained production decline by pointing at oil monopoly Transneft’s decision to decrease oil intake due to contamination problems. The company has stated that Transneft introduced “significant” limit to oil intake from its subsidiary Juganskneftegaz. According to Reuters, oil production in Juganskneftegaz dropped in the first week of July by 30 percent, when compared with June average.

Reuters has also noted that the production may be still restored during this month in the same way as in June, when the production dropped to 10.87 million barrels daily in the beginning of the month.

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