Russian oil output rises in July, misses OPEC+ target — Ifx

Production was up from 9.32 million bpd in June. (FILE/SHUTTERSTOCK)
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Updated 03 August 2020

Russian oil output rises in July, misses OPEC+ target — Ifx

  • In tons, Russian oil and gas condensate production rose to 39.63 million in July from 38.16 million in June
  • Russia usually produces 700,000 to 800,000 bpd of gas condensate

MOSCOW: Russian oil and gas condensate production increased to 9.37 million barrels per day (bpd) in July, Interfax news agency reported on Sunday, citing energy ministry data, indicating it missed its output target under a global deal.
Production was up from 9.32 million bpd in June.
From August, the output cuts — agreed between the Organization of the Petroleum Exporting Countries (OPEC) other major producers including Russia, a group known as OPEC+ — are due to be eased.
In tons, Russian oil and gas condensate production rose to 39.63 million in July from 38.16 million in June, Interfax reported.
Under the OPEC+ agreement, Moscow pledged to reduce its output to around 8.5 million bpd in May-July to support oil prices.
The deal does not include output of gas condensate, a light oil.
Russia usually produces 700,000 to 800,000 bpd of gas condensate. That means that excluding gas condensate, Russia could have produced around 8.57 million to 8.67 million bpd of crude oil in July.
The cuts under the global deal should be eased starting from August thanks to a recovery in oil prices. Russia has said it would increase its oil production by 400,000 bpd.
Russian oil exports outside the former Soviet Union stood last month at 15.72 million tons, down 27.1% from July 2019. In barrels per day, exports reached 3.72 million, according to Interfax.
The news agency also said on Sunday that Russian natural gas output reached 50.33 billion cubic meters in July, down 7.9% from a year earlier.


UK suffers biggest job losses since 2009 as coronavirus takes toll

Updated 11 August 2020

UK suffers biggest job losses since 2009 as coronavirus takes toll

  • Mounting job losses are expected as Britain winds down its job retention scheme which protects employees

LONDON: The number of people in work in Britain fell by the most since 2009 in the three months through June as the coronavirus crisis took a heavy toll on the labor market, even with the government’s huge jobs protection scheme still in place.
Led by a record plunge in self-employed workers, there were 220,000 less people employed in the second quarter, the Office for National Statistics said.
Separate tax data for July showed that the number of staff on company payrolls had fallen by 730,000 since March, sounding the alarm about a potentially much bigger rise in joblessness.
Mounting job losses are expected as Britain winds down its job retention scheme which protects employees. It is due to close at the end of October.
“The cracks evident in the latest batch of labor market data are likely to soon turn into a chasm,” said Ruth Gregory, senior economist at Capital Economics.
British finance minister Rishi Sunak said the figures showed the government’s support programs were working but job losses were inevitable.
“I’ve always been clear that we can’t protect every job, but ... we have a clear plan to protect, support and create jobs to ensure that nobody is left without hope,” he said.
The unemployment rate unexpectedly held at 3.9 percent but that reflected an increase in people who had given up looking for work and who were therefore not considered to be unemployed, and people who said they were in work but were getting no pay.
Economists polled by Reuters had expected the unemployment rate to rise to 4.2 percent. Last week the Bank of England forecast the jobless rate would hit 7.5 percent at the end of this year.
“Government needs to step in and help those who are likely to lose their job retrain for new openings in different sectors,” KPMG economist Yael Selfin said.
The number of self-employed people fell by a record amount in the three months to June, led by older workers, while the number of employees rose — something the ONS said was partly accounted for by workers reclassifying themselves as employed.
The number of people claiming universal credit — a benefit for the unemployed and those on low pay — rose to 2.689 million in July, leaping by 117 percent from March.
Pay fell by the most in more than 10 years in the April-June period, down 1.2 percent, reflecting how workers on the job retention scheme receive 80 percent of their pay. Excluding bonuses, pay fell for the first time since records began in 2001.
However, there was a small increase in job vacancies in the three months to July.
“The increase was driven by small businesses (less than 50 employees), some of which reported taking on staff to meet coronavirus (COVID-19) guidelines,” the ONS said.