Russia’s energy ministry said the nation cut its oil output by about 700,000 barrels a day last month, according to a person familiar with the figures.
However, that figure is not consistent with data on the country’s March seaborne exports and supplies to domestic refineries, adding to uncertainty about how much oil Russia is actually pumping.
The Kremlin pledged to curb crude output alone by 500,000 barrels a day between March and December in retaliation for Western trade restrictions and a price cap imposed by the Group of Seven industrialized nations. The reduction was 40% higher, according to data from the Ministry of Energy.
Eight members of the Organization of the Petroleum Exporting Countries, including de facto leader Saudi Arabia, agreed to join voluntary cuts starting in May, bringing the total reductions to more than 1, 6 million barrels per day in an effort to stabilize the global market.
The surprise decision sparked a rally in oil and set the stage for crude oil prices to return to $100 a barrel.
Russia will cut its crude output only using February output as a baseline, according to Deputy Prime Minister Alexander Novak. Bloomberg calculations based on industry data put production that month at 10.1 million barrels a day.
Energy Ministry data said producers pumped a daily average of 1.285 million tons of crude, said the person, who asked not to be identified because the figures are not public.
That equates to just over 9.4 million barrels, meaning cuts in crude alone totaled nearly 700,000 barrels a day last month.
The country’s total March output of crude oil and condensates averaged 1.413 million tonnes, the person said. That equates to 10.36 million barrels a day, compared with 11.1 million barrels in February, according to Bloomberg calculations.
The resulting total cuts averaged 740,000 barrels a day, the data showed.
Russia classified its oil statistics last year due to their “sensitive” nature, making it difficult to assess the implementation of supply cuts beyond assurances from energy officials.
As a result, Russia watchers have begun to track the country’s seaborne oil exports and domestic oil processing rates as indicators for crude oil production estimates. However, both indicators showed no visible declines last month.
The country’s four-week average crude loadings through March 31 were the highest since June, while Russian refiners kept their output roughly flat, according to Bloomberg figures based on industry data and the tracking of ships in the country.
Russia’s Energy Ministry could not immediately comment on the March production data and what prompted the promised cuts.
