Russian oil production growth slows

Preliminary figures from Russia’s energy ministry show oil output (incl. gas condensates) grew 2 % y-o-y in the first half of 2016. Output growth has slowed in recent months, with June on-year growth slightly above 1 %. Most forecasts expect Russian oil output to rise about 1 % this year.

Production growth has come largely from smaller oil companies such as Tatneft and Bashneft. Although it only accounts for a small share of Russian oil production, the oil output of gas producer Novatek has soared this year with the opening of a new field. Output has declined for Russia’s biggest oil producers Rosneft and Lukoil.

Crude oil exports have also increased this year, but the pace has been slowing slightly. The energy ministry estimates that the volume of crude oil exports was still up 7 % y-o-y in the first half of 2016. In contrast, exports of oil products have declined sharply this year due to e.g. duty hikes. 
  
Russian output and exports of crude oil and main oil products

Sources: Rosstat, Ministry of Energy, Russian customs