Russian oil output up 200,000-300,000 b/d in May, recovery to continue in June

Russian deputy prime minister Alexander Novak said May 19 that after a fall of 1 million b/d in April, Russian oil production has risen by 200,000-300,000 b/d in May and will continue to increase next month, the Prime news agency reported.

Following its invasion of Ukraine and harsh sanctions imposed by the West on Russian oil producers and exporters, the country's oil output has been significantly affected.

The latest Platts survey by S&P Global Commodity Insights has found that Russia's crude output plunged to 9.14 million b/d in April, far below its quota of 10.44 million b/d under the OPEC+ crude production agreement, which does not include condensates.

If the EU bans imports of Russian oil, the country will redistribute these volumes, Novak added.

According to Prime, Novak said during the New Horizons government conference May 19 that "there will simply be price increases. The oil that they bought from us, they will have to buy elsewhere and pay more for it."

Nevertheless, there will simply be a redistribution, and we will direct our resources. Of course, to those markets from where oil is redirected to the European Union," he said.

Russia is increasing exports to the Asia-Pacific region as European consumers shun Russian barrels.

Novak said that Russia expects the US to add around 1 million b/d this year and increase oil production at a slower pace.