Russia ups output on back of oil prices

11 September 2009

Russia upped its oil production last month to new record levels close to ten million barrels per day as sustained oil price increases helped to provide a steady source of income for the country's economy.

Despite efforts by Opec to reduce output, Russia opted to continue along a path of increasing production.

But energy minister Sergei Shmatko told Reuters that no deal was agreed with Opec to limit production.

"We never had any obligations [to Opec]. When we were communicating, we never promised anything. To say that we do not play by the rules is not correct," he told the news agency.

Russia's economy suffered last year when oil revenues fell dramatically. However, a return to strength in the price of the commodity has helped to boost the country's coffers.

Earlier this week, Opec voiced concern that Russia had not opted to cut production levels in line with the drops made by cartel members.

At the latest meeting of Opec members, however, it was agreed that no further production cuts will be made at this time.

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