OPEC Cuts Suit Russia as It Maintains High Exports

The OPEC+ decision to extend voluntary production cuts suits Russia as they look to maintain high exports with growing domestic demand in the summer season according to Energy Intelligence.

• Deputy Prime Minister Alexander Novak said after the meeting in Vienna that Russia is in full compliance with its 500kb/d production cut level.
• Crude oil exports to non-CIS markets in May were up by over 100kb/d to 4.94mb/d according to Energy Intelligence while shipments to domestic refineries dropped by 230kb/d to 5.38mb/d.
• Shipments from the Baltic Sea ports of Primorsk and Ust-Luga jumped to the highest in almost two years by 85kb/d to 1.75mb/d. Exports from the Black Sea were up by 40kb/d, and from the Pacific port of Kozmino increased by 25kb/d to the second highest level on record at 890kb/d.
• Russian pipeline exports via the Druzhba pipeline to Hungary, Slovakia and the Czech Republic, were also slightly up on the month in May.
• The average Urals price dropped in May according to Russia’s finance ministry to 53.34$/bbl from 58.60$/bbl in April but the Urals discount Brent fell to 22.18$/bbl in May from 26.39$/bbl in April.