Russia set a post-Soviet production record and Iraq exported the most oil since the 1980s in the month of December, according to a report from Bloomberg.
The information, which was acquired from an email by the Russian Energy Ministry, said Russia’s total production for December was 10,667 MBOPD – a month-over-month increase of 0.3%. The United States is the only country to produce greater volume, based on data from the International Energy Agency’s (IEA) latest Oil Market Report. Its production for September 2014 (the most recent official report) averaged 12,300 MBOPD.
Preliminary statistics showed Russia’s export level actually declined but may be revised once the official report is released. Shipments from Gazprom Neft were not reflected. The state-owned energy giant announced it plans on trimming its expenditures for the second straight year in a news release issued earlier this week.
Alexander Novak, Russia’s energy minister, says the country will maintain output and expects prices to stabilize. The record production rates are occurring even though the U.S. and European Union have imposed sanctions on the country. The ruble has fallen by 45% against the dollar since the first round of sanctions was implemented. Approximately 18.7% of Russia’s gross domestic product is sourced from hydrocarbon production.
Iraq, meanwhile, exported 2,940 MBOPD in December – the most in roughly three decades. The boost was aided by volume in Kirkuk increasing to normal levels of approximately 180 MBOPD. Kirkuk has been the battleground of clashes with Iraqi forces and the Islamic State in recent months. The country recently reached an agreement with the Kurdish territory concerning its export system to Turkey, which allows export flows of up to 550 MBOPD from Kirkuk and the northern region.
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