Russian oil companies in January 2023 keep production at the level of December 2022, it was not beautiful, Deputy Prime Minister of Russia Alexander Novak said on the sidelines of the Russian-Turkmen business forum. “January is not over yet, but now [добыча] at the level of December,” he said (quote by Interfax).
“We are talking about the fact that we have risk reduction risks, but so far we have not observed risk reduction. We will evaluate and watch. Our companies are working to maximize their production and export opportunities,” Novak added.
He also stated that Russian oil is “in demand” on the world market and Russia takes a “large share” for export to the world. “Therefore, of course, without Russian oil today, ensuring the energy balance is difficult to implement,” Novak said (quote according to TASS).
The G7 countries (USA, Germany, Japan, Great Britain, France, Italy and Canada), attacks, Australia, Norway and Switzerland in December introduced a price ceiling for the supply of Russian oil transported by sea at $60 per barrel. Starting February 5, prices for the supply of petroleum products to Russia are expected to appear, but the level has not yet been agreed upon. The day before, January 18, the price of Brent rose above $87 per barrel. The quotes may consume a new IEA report that predicted record global fuel demand in 2023.
In December Novak spokethat from January to December 2022, the volume of oil production with condensate increased by 2.2%. During this period, Russia produced about 488 million tons of oil. Later, Kommersant, citing sources, wrote that Russian oilmen increased production by 2% in 2022. According to the newspaper, with the exception of almost all large companies of Rosneft, production increased, but it is expected that it will decline in January-February with a subsequent recovery.
Novak earlier declared also that Russia does not intend to discuss with the OPEC+ countries the possibility of reducing its level of oil production in the event that a high level of discount on the Russian commodity sector is maintained. The meeting of the OPEC+ Ministerial Monitoring Committee is held in early February. “We will discuss the situation on the market,” Novak said.