Russia supplied more than 512 million tons of oil to the world market last year. Compared to 2019, there was a decrease of less than nine percent. As a way, oil production in Russia fell for the first time since 2008 and below 2011 levels.
Russia extracted an average of 10.27 million barrels of oil per day last year, up from more than 11 million in 2019. This represents a decrease of almost 9% and the first year-on-year decrease in mining since 2008. This is partly due to the decline in global oil demand as a result of the coronavirus crisis and to the outcome of negotiations within the OPEC+ group of countries. At the same time, last year’s output is the lowest since 2011, when the global oil market was still recovering from the aftermath of the global financial crisis.
Russia agreed to cut production last April, reducing its production by more than two million barrels per day, unprecedented. But in recent weeks and months, Russia has been trying to persuade other OPEC+ countries to increase again.
It is estimated that there is now a supply deficit of around three million barrels per day in the global oil market, which is why OPEC+ was expected to agree to increase production. However, the Summit of National Representatives, held on 4 January, will extend until at least the next day, because an agreement has not yet been reached.
