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Russia’s crude oil production dropped in February, below its OPEC and allies (OPEC+) oil-output target for the first time since the historic curbs began last May, Bloomberg reports, citing preliminary data from the Energy Ministry’s CDU-TEK unit. 

Additional takeaways

“The nation produced 38.56 million tons of crude and condensate in February. That equates to 10.095 million barrels a day, based on a 7.33 barrel-per-ton conversion ratio.”

“February, Russia’s first month of over-compliance with the deal, brought abnormally cold temperatures. The nation’s crude pipeline operator, Transneft PJSC, regularly recorded lower crude flows at some Siberian intake points over the month, citing frigid weather as one of the reasons.”

“Russia and close oil ally Kazakhstan were allowed to produce more in February and March under the deal reached between the Organization of Petroleum Exporting Countries and its partners. Russia’s quota rose by 65,000 barrels a day in February, and will do so again this month.”

Market reaction

Amid broad risk aversion, WTI drops 1% to test the $60 mark, shrugging off the upbeat Russian oil output data.

Reports that the OPEC+ is looking to increase oil output at its March 4 meeting keep the oil traders overwhelmed.

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