Oil production in Russia is back with a vengeance. Whether Moscow ever really adhered to its agreements to cut production is a matter of debate, but the government’s most recent production data should put that debate to rest. Last month, Russia produced more than 11 million barrels per day – the most it has produced in the post-Soviet era. Russia even has “a few hundred thousand barrels” of spare capacity, according to Energy Minister Alexander Novak, who again said Moscow would be willing to flood the markets even more to offset the loss of Iranian oil come November. One small hitch: Moscow’s deputy energy minister said Russian pipelines to Asia – home to the largest importers of Iranian crude, most of which intend to comply with U.S. sanctions – are operating at maximum capacity already, so any new production would need to be driven by European demand. Global oil flows are extremely liquid (pun intended), given how cheap it is to move crude by ship, so markets will adj
Daily Memo: Russia’s Oil Flows, EU Problems Grow
All the news worth knowing today.