Dubai: Russia’s oil output in November eased a tad from its record high in November, data from the energy ministry showed.
Russia, which plans to participate in cutting oil output with Saudi Arabia and other Opec members, produced 11.37 million barrels per day, a little lower than the previous record of 11.41 million bpd that it reached in October.
Russia and Saudi Arabia, which controls more than 70 per cent of the Opec plus production, have agreed in principle to cut oil production, but the details on the quantum will be worked out at a meeting slated later in the week. The Opec plus meeting will start on December 6-7.
Expectations of a possible production cut from Opec plus countries along with an 8 per cent in production from Canada’s Alberta region resulted in a 4 per cent surge in oil prices on Friday.
Saudi Arabia produced a record of more than 11 million bpd on expectations that it would be able to fill in the void left due to sanctions on Iran. But last minute waivers from the US government to 8 countries meant excess supplies in the market, causing a more than 30 per cent fall in oil prices from a high of $86 per barrel in Brent.
US president Donald Trump on the other has made appeals to Saudi Arabia to boost production because he felt that prices had been too high. “Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower,” Trump said in a tweet posted on November 21.