Russia to Keep Oil Output Below 540Mln Tonnes in 2016

Russian Energy Minister Alexander Novak said that Russia plans to produce 537-540 million metric tons during 2016.

MOSCOW (Sputnik) — Russia plans to keep its oil production at under 540 million metric tons in 2016, keeping the running total below the level reached in January as part of the Doha output freeze deal, Russian Energy Minister Alexander Novak said Friday.

"In 2015, output levels were at 534.1 million metric tons. In January, the output was slightly higher than in December. As part of the talks on output freeze, we plan the production to remain below the January levels throughout the entire year. It must be calculated by a running total, with the yearly amount coming to 537-540 million metric tons," Novak told reporters.

In February, the energy ministers of Saudi Arabia, Qatar, Venezuela, and Russia agreed to stem the fall in oil prices by freezing oil production at January levels if other countries followed suit. The deal is expected to be finalized on April 17. A number of Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers have confirmed attendance.

In March, Russia produced 46.149 million metric tons of oil, according to Russian Energy Ministry figures. This is higher than January's output of 46.006 million tons. In early April, Novak stated that the increased output should not offset the Doha deal, as only the average daily output will be compared to January levels, with and allowance for fluctuations.

Global oil prices plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003 amid an ongoing glut in global oil supply. The prices have since recovered to around $40 per barrel for the Brent crude benchmark.