MOSCOW, Oct 30 (PRIME) -- The combined output of Russia’s oil and gas industry may contract on the year in October due to the country’s compliance with the oil output reduction deal of OPEC and non-OPEC states, the Economic Development Ministry said in a report on Monday.
“The oil and gas sector is likely to show an output contraction compared with the record levels of last year due to Russia’s fulfillment of obligations under the OPEC+ deal and a return of Europe’s weather to the calendar norm,” the ministry said.
The OPEC states agreed to reduce production by 1.2 million barrels daily to 32.5 million barrels in November 2016. In December 2016, 11 non-OPEC countries including Russia agreed to cut their combined output by 558,000 barrels. The agreement was concluded for January–June and prolonged for nine more months in May.
But output of the processing industries will continue growing in October, while the producing industry will shrink. “The Manufacturing PMI index grew to 51.9 in September from 51.6% in August due to a significant expansion of output capacities and new orders, including for exports,” the ministry said.
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