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Russia Benefited More than Saudi Arabia from OPEC+ Deal

Russia Benefited More than Saudi Arabia from OPEC+ Deal

Sunday, 17 November, 2019 - 06:00
FILE PHOTO: The sun sets behind an oil pump outside Saint-Fiacre, near Paris, France March 28, 2019. REUTERS/Christian Hartmann/File Photo

Russia has earned more money this year from the OPEC+ deal than Saudi Arabia, underscoring how the Kingdom has carried a greater share of the burden of production cuts.

Saudi Arabia on average has cut production almost ten times deeper than Russia, according to estimates in the International Energy Agency’s monthly oil market report.

Yet Riyadh has received just three quarters of the additional financial benefit enjoyed by Moscow, the data show.

Russia has earned an average of $670 million a day in gross crude oil revenues in 2019. That’s $170 million a day more than in the last quarter of 2016, when the Organization of Petroleum Exporting Countries and its partners reached the first production-cuts deal, the IEA said, according to Bloomberg.

Saudi Arabia has been earning $630 million every day since the start of the year, up $125 million compared to the fourth quarter of 2016, Bloomberg quoted the IEA as saying.

While the Kingdom has reduced its oil production since the end of 2016, by around 740,000 barrels a day, Russia’s daily output cuts have averaged just 75,000 barrels, according to the Paris-based agency.

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