Russia is bullish on its future oil output - TASS

Russia’s oil and gas revenue for its federal budget in 2024 might increase by 30% compared to 2023, after “fully fulfilling its obligations to voluntarily reduce production,” state-owned media agency TASS reported citing the Russian Finance Ministry.

PHOTO: Oil pump jack and barrels with the Russian flag. Getty Images

In August, Russia’s deputy prime minister Alexander Novak said that the country will continue to cut down on crude exports through the end of 2023. At present, the country is producing 9.5 million b/d, TASS reported.

“Russia is not negotiating with OPEC+ on possibly increasing oil exports to replace shortfalls in volumes of such supplies,” TASS quoted Kremlin spokesman Dmitry Peskov saying. "We adhere to all agreements within OPEC+. Our partners are already doing this," he was further quoted saying.

The country pledged a voluntary output cut of 500,000 b/d in March 2023 as the broader OPEC+ oil producers group bid to bring a “balance” in global oil markets.

Additionally, the Russian energy minister Nikolai Shulginov said on Thursday that the country will not lift its ban on fuel exports “anytime soon” until domestic fuel prices become stable, Reuters reported citing TASS.

Even though the government made some amendments to its temporary export ban last week, by lifting restrictions on bunker fuel sales, Shulginov reaffirmed that “expectations of a quick lifting of the fuel export ban are futile,” TASS reported.

Last week, the Russian government implemented temporary restrictions on exports of gasoil and diesel to stabilise the supply in the domestic market, TASS reported.

Russia’s oil and gas revenue projections

Keeping in mind the ongoing production cuts and export bans, the Russian government expects the country’s oil and gas revenues to grow in the coming years.

“Oil and gas revenues of the Russian federal budget may increase in 2024 by almost 30% compared to 2023 - from 8.86 trillion rubles ($91.6 billion) to 11.5 trillion rubles ($118.9 billion),” TASS reported.

The Russian Finance Ministry further expects the country’s oil and gas revenue to increase to 11.8 trillion rubles ($121.97 billion) in 2025, TASS reported citing official documents.

The document stated that oil and gas income is estimated to make up 6.4% of total GDP in 2024, up from a share of 5.3% in 2023, TASS further reported.

By Aparupa Mazumder 

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