Daily Energy Report
Daily Energy Report
Russia crude production, Rig count, Shale output growth, US refiners trim output, Oil demand & OPEC+ hike, Iranian exports, Offshore wind hazard, UK biomass flop, India energy trends, and more.
News of the Day: Russian Crude Production and Exports Are Down
Reuters: Russia Topped OPEC+ Oil Output Quote in July, Will Compensate
Summary
In July, Russia's oil production exceeded its OPEC+ quota by 67 kb/d due to a temporary supply schedule issue, despite an overall decrease compared to June. The Russian energy ministry pledged to adhere to its agreed quota of 8.98 mb/d for June to September and plans to compensate for the excess production in August and September, as well as during periods from October to November and March to September 2025.
Figure (1) shows Russia seaborn crude exports by destination. Here are a few observations about the data in the chart:
1- India’s crude imports from Russia increased after the Russian invasion of Ukraine as the Russian crude was sold at a discount. It skyrocketed after the G7/EU imposed sanctions on Russian crude.
2- Russian crude exports have been declining in recent months, especially in July. As exports decreased, India’s imports from Russia decreased.
3- Crude exports have not increased as refineries were hit by Ukrainian drones. This might indicate that the Russian crude supply system is not as flexible as expected by analysts.