Russia produced more oil in September than envisaged by a global deal due to an increase in gas condensate output as the country prepared for winter, local news agencies reported on Oct. 20.
Russian oil output edged down to 11.25 million barrels per day (MMbbl/d) last month from August's 11.29 MMbbl/d but remained above the cap set under the global production deal.
Under the accord reached between OPEC and allied producers, Russia has agreed to reduce output by 228,000 bbl/d from an October 2018 baseline.
Energy Minister Alexander Novak has said the reduction totaled 200,000 bbl/d last month. He reiterated that the country would strive to fulfill its obligations this month in full.
"We had specific obligations, related, among other factors, to dealing with the winter period, with the production of gas condensate," TASS news agency quoted Novak as saying.
Output of gas condensate, a light oil, is included in Russian statistics on total oil production.
OPEC, Russia and other oil producers, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 MMbbl/d from the start of this year.
Several countries, including OPEC kingpin Saudi Arabia, have complained about Russia's failure to comply with the deal in full.
While some oil producers in the Gulf region have taken a massive hit, others are scaling back projects in an effort to survive.
The natural decline rates of existing oil and gas wells across major shale plays in the U.S. will contribute to a tighter supply/demand balance.
Analysis reveals a 20% output decline in a $1.80 to $1.90 Henry Hub scenario for the shale gas play.