Russia pumps most oil since Soviet Era as sanctions yet to bite
Russia pumps most oil since Soviet Era as sanctions yet to bite
By ANNA ANDRIANOVA
MOSCOW (Bloomberg) -- Russian oil production rose to a post-Soviet record last month, showing how pumping of the nation’s biggest source of revenue has so far been unaffected by U.S. and European sanctions or a price collapse for the commodity.
The nation increased output 0.3% to 10.667 MMbpd, according to preliminary data by CDU-TEK, part of the Energy Ministry. The figure is for crude and condensates, an ultralight oil that yields a greater proportion of high-value fuels. Production averaged 10.58 MMbpd for 2014, also a post-Soviet record.
The U.S. and the European Union imposed sanctions against Russia last year in response to the country’s annexation of Crimea and what they say was support for separatists in eastern Ukraine. Measures included targeting the country’s energy sector by banning exports of some equipment and technology. Russia gets about half of its revenue from oil and gas taxes.
Brent crude, used to price about half of the world’s oil including Russia’s main export blend Urals, fell 0.2% on Jan. 02 to $57.19 on the ICE Futures Europe exchange in London. Its 2014 peak was $115.71.
The previous post-Soviet oil production record was 10.64 MMbpd in October, CDU-TEK data show. It rose above 11.4 MMbpd in 1987, the Soviet-era peak, data from BP show.
Preliminary data showed a decline in exports. The figures didn’t reflect shipments by Gazprom Neft and may be revised.
