Russia ramps up oil supply to 10m barrels a day

2 October 2009

Crude oil production in Russia exceeded ten million barrels a day in September as the country continues to ramp up output, according to Energy Ministry data.

Figures showed that supply grew by 0.4 per cent from August to reach 10.01 million barrels a day - setting a new monthly production record, Reuters reports.

Despite suffering its first drop in ten years last year, Russian output has recovered in 2009 and the nation is now the world's largest oil producer after Saudi Arabia reduced supply in line with Opec cuts.

The increase in production could represent good news for home heating oil customers, as a larger supply of crude could help bring down the overall price of the fuel.

It comes despite Opec's recent efforts to curb output, with the group having cut production by more than four million barrels since September last year in a bid to shore up the market.

Oil prices are currently trading at around $70 (€48.14) a barrel - a price that several Opec officials have described as "acceptable".

However, according to US bank Goldman Sachs, demand for the fuel is recovering faster than many analysts expected, meaning values could reach $85 before the year is out.

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