RenCap Sees Oil Output Up 0.5%

Russian crude oil output will recover slightly early this year after a recent fall but will plateau after that, Renaissance Capital said in a report on Monday.

"As we expect no growth at all for the core producers this year, our forecast for Russia's overall crude output in 2008 is just plus 0.5 percent [year-on-year] measured in tons," it said.

The forecast is more pessimistic than those of the government, which has said it expects oil output to grow by 1.7 percent this year.

Statistics for January and February show crude production has moved into negative territory for the first time in several years, in what some analysts said was a reaction to global stock market volatility and deteriorating risk appetite.

"Spending for major producers remains focused on greenfield projects, which will take some time to contribute," said Roman Yelagin, senior associate at Renaissance Capital.