FSUOGM: Russia to slash oil exports in August

Russian oil exports are slated to drop by 100,000-200,000 barrels per day (bpd) in August versus the level this month, sources told Reuters last week, signalling that Moscow intends to follow through on its OPEC+ commitment to make further supply cuts.

OPEC+ members have been curtailing production since November last year in order to prop up oil prices, with Russia pledging this month to reduce its exports by a further 500,000 bpd in August, while Saudi Arabia agreed to maintain its reduction of 1mn bpd.

Russia did not say what baseline it would use to calculate its latest reduction, and it has become increasingly hard to estimate just how much oil the country is producing, as it has stopped publishing data. The amount of oil being loaded at Russia’s western ports such as Primorsk and Ust-Luga on the Baltic Sea and Novorrossiysk on the Black Sea is expected to drop to 1.9mn bpd in July, according to Reuters, from 2.3mn bpd in June and 2.4mn bpd in May.

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