Russian Oil Output Breaks 11mn B/D In September, On Track For Annual Record

• Russian oil output set a new record of 11.11mn b/d in September as state firms Rosneft and Gazprom responded to ‘freeze’ talk by ramping up Arctic production. The companies started output at Russia’s most northerly field, Vostochno-Messoyakha, on 21 September.

• For the first nine months of 2016 output averaged 10.87mn b/d, well up on last year’s previous post-Soviet record.

• Despite oil prices languishing below $50/B for most of the year to date, Russian producers continue to benefit from the weakness of the Rouble against the US dollar. The Russian currency has stabilized at around RUB65 per $1 in recent months, up from a low of RUB80=$1 in January, but around half its value in the first half of 2014 before oil prices collapsed. Russian producers thus get more bang for their oil export buck from local contractors. (CONTINUED - 222 WORDS)