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Russia has increased oil production by 2.3% in 2016

Russia has increased oil production this year with 2.3%, despite of the low commodity price and increasing pressure on oil production limits. The country produced by 10.7 million tons than the same period last year, according to the report of Russian Deputy Energy Minister Kirill Molodtsov.

In 2016, the Russian oil exports will reach 253 million tons according to the forecast in the Russian Ministry of Energy. In 2017 can be expected export growth under 6.7%, according to the budget framework. In comparison Russia exported 242 million tons of crude oil in 2015.

“Our goal of processing is first of all to satisfy domestic demand. Deficit is not expected”, said Russian Deputy Energy Minister Kirill Molodtsov.

Russian oil exports rose by 4.6% on the year between January and October, with October exports inching up 0.1% over the export levels from October last year. Last month, the country’s oil production hit a new post-Soviet era high at 11.2 million barrels per day. According to the forecasts of the analysts the country will increase output by 11.7 million barrels per day in 2017.

The statement of Kirill Molodtsov is against the expected meeting of oil cartel OPEC, which will be held on November 30 in Vienna. The markets predict that this time the organization will be able to agree to freeze production with which to stabilize the markets.

Russia is not a member of OPEC, but in recent months has led calls for a joint decision between oil producers. Moscow’s position with respect to the idea of freezing the yield is still not clear.

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