OPEC production cuts yield big benefits for Russia

OPEC’s strict limits on production along with the seldom mentioned futures market manipulation have successfully elevated the price of oil.  Russia has been a strong supporter of OPEC’s efforts. That support has not included production cuts in Russia, whose market share has grown along with the prices.

According to the Russian Ministry of Energy, in the second quarter of 2009 Russia exported 7.4 million barrels of oil and oil products a day. It was expected that Russia would cut oil supplies after Russian officials vowed to support oil prices in December of 2008. Instead, the Russian oil companies got tax reduction, moreover, the leaders of the segment – Rosneft, Lukoil, TNK-BP - raised oil production by virtue of oil prices, which soared by 54%. (Russia IC)

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