Russia increases oil exports for the first time in five years

Last year, Russian oil exports to Europe grew by more than 8% and reached 150 million tons, or about 3 million barrels per day as a result, data published by the Ministry of Energy of Russia indicates.

The overall export of Russian oil to all the nations of the world in the same period has risen for the first time since 2009, when its volume amounted to 248.3 million tons. Over five years, until 2014, it decreased, eventually reaching the level of 221.3 million tons. Last year, Russian oil exports amounted to 241.8 million tons, RBC writes, referring to the Bloomberg agency.

Russian companies were able to achieve record production due to the weakening of the ruble, low capital costs and the not burdensome tax system. At the same time, the increase in refinery margins in the conditions of the drop in oil prices has affected the demand for Russian oil from European refineries positively, and the Russian oil industry reacted to this trend in time. The launch of new projects, which increase production, contributes to the growth of exports and a reduction in domestic consumption.

In the future, experts expect that the trend of increasing Russian oil exports will continue in Europe.

Now, on the eve of the meeting of petroleum exporting countries in Doha on April 17th, the Russian authorities are resolving the issue of how long oil production can be frozen and how compliance with the agreement reached will be verified. Implementation of the agreements may face two obstacles: the position of Iran, seeking to regain its lost positions on the oil market during the years of sanctions, and the willingness of the participants themselves to fulfill this agreement.

As for Iran, recently the head of the country's Ministry of Oil, Bijan Zanganeh, stated that Iran's oil production in February reached about 3.1 million barrels per day, and the target figure, which amounts to 4 million barrels per day, will be implemented only in March of 2017, which indicates a slowdown in production growth. In the future, Iran could become a direct rival to Russia in the global market. The head of the Ministry of Energy of the Russian Federation, Alexander Novak, expressed hope yesterday in Novokuznetsk that Iran will still join the common agreements.

Speaking about a possible violation of the agreement on a freeze, Goldman Sachs, for example, expects that the production of oil and condensate in Russia will rise next year, despite the agreement, from 11.1 million barrels per day to 11.2 million barrels per day.