Russian Feb oil exports slump, output stagnates

MOSCOW (Reuters) – Russian February oil exports slumped to the lowest level since 2004 as record-high crude export duties forced oil firms to re-route volumes to domestic refineries, while output stagnated for a second month in a row.

Energy Ministry data showed on Monday that February oil production was 9.79 million barrels per day, almost unchanged from 9.78 million bpd in January, while pipeline exports to Europe fell to 3.99 million bpd from 4.28 million in January.


Oil firms have long complained that very high taxation is damaging their investment and they cannot develop new fields to support production, which grew by more than 60 percent since 1999.

Year-on-year production was down 0.7 percent from 9.86 million bpd Russia produced in February 2007.

Traders said high export duties were the key reason behind the pipeline export decline, but also noted that they were hit by a pricing dispute between oil major LUKOIL and a monopoly importer of Russian crude to Germany, Sunimex.

Reuters