Russia Again World’s Leading Oil Producer

PHOTO by Alexei Danichev / RIA Novosti
Russia’s oil production surpassed Saudi Arabia’s in December 2016, although both countries’ overall output fell during that period

In December, Russia generated 10.49 million barrels of oil per day while Saudi Arabia’s production amounted to 10.46 million barrels, Bloomberg reported, citing analytical data from the Joint Organisations Data Initiative.

Russia’s oil production fell by 23,000 barrels while Saudi Arabia’s fell by 260,000. This means that Russia is again the world’s leading oil producer, a designation it lost in April 2016. The United States came in third place at the end of 2016 with a daily production rate of 8.8 million barrels.

Russia began to reduce its oil production after signing an agreement with the OPEC countries in December 2016. The agreement’s goal is to make a joint impact on the global oil market by not oversaturating it.

The agreement on the limitation of oil production came into force on Jan. 1, 2017, and it will be in force for six months and may be extended as necessary. Russia and OPEC reached the agreement at the beginning of December 2016 after OPEC had agreed at its summit in Vienna to reduce its oil output by 1.2 million barrels per day. Russia has agreed to cut its oil production by 300,000 barrels during the year.

In January, the OPEC members reduced the production of raw materials by one million barrels per day to 32.06 million.