Russia’s oil production rises in February as sanctions paralyze trade

Reuters calculations, based on a report by the Interfax news agency, showed that Russia’s production of oil and gas condensate rose in February to 11.06 million barrels per day, while trade in crude was hampered by the sanctions imposed due to developments in Ukraine.

Production increased from 11 million barrels per day in January, while Interfax said total oil and gas condensate production in tons reached 42.23 million tons last month, compared to 46.35 million in January, which had a three-day increase.

Russia is struggling to sell its oil in the wake of sweeping sanctions imposed by the West over Russia’s invasion of Ukraine last week.

The effects of the sanctions were being felt in the oil market. Offers were made to sell Russia’s main Ural crude at a discount of more than $18 a barrel to the spot price of Brent, a record difference that has not occurred since the fall of the Soviet Union.

Even at this price, traders were unable to find willing buyers.

Interfax also said that Russian oil exports outside the former Soviet Union rose 12.7 percent in January and February from a year ago to 36.99 million tons, or 4.6 million barrels per day, on average.