Russia's Rosneft net income plummets 68%, Reuters reports
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Russia's Rosneft net income has fallen more than 68% to 245 billion roubles ($3 billion) in the first half of the year due to weak oil prices, Reuters reported on Aug. 30, citing industry sources.
Oil prices were dragged down by production hikes by Saudi Arabia and other states of the Organization of the Petroleum Exporting Countries (OPEC+).
The head of Russia's largest oil producer, Igor Sechin, said that production cuts by the group led to a rise in output by the U.S., which has become the world's leading oil producer.
"The first half of the year was characterized by a decline in oil prices, primarily due to overproduction of oil. The main reason is the active increase in production by OPEC countries, including Saudi Arabia, the UAE, Iraq, Kuwait," Sechin said on Aug. 30.
Industry sources told Reuters that Russia expressed concern at the OPEC+ meetings about faster-than-expected output increases, but Russia ultimately supported it.
OPEC has been cutting production for several years to support global oil prices.
After calls from U.S. President Donald Trump earlier this year, the cartel upped production in an effort to regain some of its former market share.
Russia revised its August crude oil export plans from ports in the west of the country, increasing them by 200,000 barrels per day compared to the initial schedule.
This came amid ongoing Ukrainian attacks on Russian oil infrastructure. According to Reuters calculations, Ukraine struck 10 refineries throughout August, shutting down facilities representing 17% of national processing capacity, or 1.1 million barrels per day.
The paralyzed refineries freed up additional crude oil volumes for export.
According to the outlet, total loadings from Primorsk, Novorossiysk, and Ust-Luga are expected to reach 2 million barrels per day, up from the planned 1.8 million.
Russian oil companies have yet to receive final loading plans for September, though typically the schedule is finalized a week before the start of the month.
