Russia retains global oil leadership

Russia retains global oil leadership

Russia’s oil production amounted to 10.183 mln barrels per day in June 2017, outpacing Saudi Arabia’s oil production by 2.3% (9.95 mln barrels per day), according to the documents released by the state statistics service Rosstat.

The total daily production of OPEC nations stood at 32.61 mln barrels in June, including 4.5 mln barrels produced in Iraq, the report said.

The average actual export price of oil amounted to $336.4 per tonne in June 2017, a 4.9% decrease compared with May. The price for Urals crude oil on the global market was $333.3 per tonne in June, a 7.1 drop compared with May, TASS reported.

The share of oil export amounted to 27.3% in the total volume of Russian exports in the first half of 2017, and to 43.7% in the export of fuel and energy commodities (versus 25.4% and 43.1% in January - June 2016, respectively), Rosstat added.

A leading analyst of the National Energy Security Fund, a lecturer at the Financial University under the Government of the Russian Federation, Igor Yushkov, speaking with a correspondent of Vestnik Kavkaza, said that Russia's long-term leadership in oil production is not guaranteed. "We have a lot of old fields that are experiencing a decline in production, but now we are building up our output, mainly due to the small fields in the north. I recall that a certain privilege was introduced for the northern fields a few years ago, which spurred a significant increase in output in the region," he stressed.

In general, Russia's leadership allows it to maintain its regular sales markets and increase profits. "The constant growth of Russian exports is the trend of the last year and a half, which means that companies pay more taxes on mining and export duties, which is beneficial to the Russian treasury, since up to 40% of budget revenues are oil and gas revenues. In addition, Russia retains its foreign markets in competition with other countries. We have increased oil supplies to China so much that had become the largest exporter. Considering the fact that China is increasing the volume of fuel consumption, it is extremely important to be a leaders in this market," Igor Yushkov said.