Russia keeps its oil output unchanged in August:

Russia has kept its oil output unchanged in August

Photo: Reuters

Russia kept its oil production close to its record highs last month and stopped the increase for the time being.

The country has an average of 11.21 million barrels per day in August, according to data from the Russian Ministry of Energy on Sunday. The volume remained virtually unchanged from July, when the output of the country almost reached its peak after the Soviet reached in 2016, reports Bloomberg.

Russia is the main beneficiary of its agreement with the organization of oil exporting countries (OPEC), which was concluded two months ago, to ease trade quotas. The country has added almost 250,000 barrels per day to its production in June and July, while its largest partner in Saudi Arabia has kept its supply below the level it sees in June, fearing to boost global demand.

However, Saudi's have produced more than 10.42 million barrels a day last month, according to two OPEC representatives. This means an increase of nearly 140 thousand barrels in July. The cartel must present its official data on 12 August.

Russia plans to keep its yield at around 11.2 million barrels per day by the end of this year, an official said last month.

The export of crude oil rose by 1.9 percent from July to 5.55 million barrels per day, after Russia benefited from record high oil prices in ruble.

Traders and analysts closely monitor the production levels of Russia and OPEC, whether they will be able to close the supply gap that is likely to arise if US sanctions against Iran's oil exports come into force in November. Venezuela's production also fell sharply as a result of the economic crisis. On the other hand, the continuing trade dispute between the US and China raises the concern that demand will also be affected at some point.

The OPEC Commission and its allies will meet in Algeria on 23 September to discuss the market situation.

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