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.


India’s Reliance to push on with retail deal in battle with Amazon

Updated 9 min 21 sec ago

India’s Reliance to push on with retail deal in battle with Amazon

  • The row is the latest development in a prolonged battle for dominance in India between Reliance

MUMBAI: Indian conglomerate Reliance has dismissed Amazon’s push to delay its acquisition of domestic retail giant Future Group, despite an arbitration panel suspending the deal following objections by the US online titan.
The row is the latest development in a prolonged battle for dominance in India between Reliance, owned by Asia’s richest man Mukesh Ambani, and Amazon, whose founder Jeff Bezos is the world’s wealthiest person.
Amazon, which owned a stake in one of Future Group’s firms that reportedly included an option to buy into the flagship company, claims that the $3.4-billion Reliance deal, announced in August, amounted to a breach of contract.
After an arbitration panel ordered the deal to be put on hold following Amazon’s request, Reliance said late Sunday that it would nevertheless “enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay.”
Reliance’s retail subsidiary RRVL said in a statement that it had followed “proper legal advice” before agreeing to buy Future Group, adding that the deal was “fully enforceable under Indian Law.”
Reliance, Amazon and Walmart-backed Flipkart have been locked in a frenzied contest for a share of India’s lucrative online market.
The acquisition of Future Group, which owns some of India’s best-known supermarket brands such as Big Bazaar, would strengthen Reliance’s presence in the hugely competitive e-commerce sector.
The arbitration panel has 90 days to give a final verdict on the Reliance-Future deal.