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. Last Updated: 07/27/2016

Oil Production Hits 8 Million Bpd

Oil production in November hit 8 million barrels per day for the first time in a decade, but exports including transit volumes from neighboring Kazakhstan and Azerbaijan were flat, an Energy Ministry source said Monday.

Traders said that exports levels were relatively modest after peaking in September -- Black Sea ports were again hit by storms in November -- and predicted shipments could further slide in December.

Industry sources also noted that despite hitting a new post-Soviet high of 8 million bpd, production growth had been curbed slightly as oil majors started feeling the first signs of a domestic glut.

According to data supplied by the Energy Ministry source, crude oil production, booming for the fourth straight year in Russia, rose in November to 8 million bpd from 7.95 million bpd in October. Output had been rising by at least 100,000 bpd in previous months.

The world's second largest oil exporter after Saudi Arabia supplied 3.2 million bpd of its own and transit crude to international markets in November, unchanged from October levels.

Transit volumes, mainly from Kazakhstan and Azerbaijan, declined in November to 393,000 bpd from 434,000 bpd in October.

Russian-only crude exports via state pipeline monopoly Transneft stood at 2.7 million bpd in November, up from 2.65 million bpd in October.

Deliveries bypassing Transneft fell in November to 103,000 bpd from 122,000 bpd in October. Traders estimate volumes leaving the country by rail and small ports at 600,000 bpd and put real volumes of crude oil exported from and via Russia at above 4 million bpd.

Energy Ministry sources said oil firms trimmed their ambitious oil output targets in November fearing oversupply could cause a domestic glut and collapse prices.