Oil in Global Economy Series: Russia’s oil production at record high

Oil production is rising all across the top producers.

Reuters reported that according to their survey, OPEC production is up by 220,000 barrels per day in August, which is the biggest increase since the Vienna accord to cut production by 1.76 million barrels per day. Reports are also suggesting that production is moving higher in Russia too and at a time when the U.S. oil production has reached an all-time high of 11 million barrels per day.

In August, Russia produced 11.21 million barrels of oil per day according to data mailed by Russian energy ministry to Bloomberg. In November 2016, as per Vienna accord, Russia agreed to reduce its production by 300,000 barrels per day, but as OPEC eased its production quota at the last June OPEC meeting, Russian production reached an all-time high of 11.215 million barrels per day in July and it is maintaining at the level in August. Russian production has now surpassed the Soviet era peak above 11 million barrels per day.

WTI is currently trading at $70.6 per barrel, and Brent is trading at $8.2 per barrel premium to WTI.