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. Last Updated: 07/27/2016

Oil Output Hits New Record

Oil output recovered from a deep winter slump and reached 9.69 million barrels per day in June to exceed the previous post-Soviet high in December 2005, the energy ministry said Monday.

June production was 2.7 percent higher than in June 2005, in line with forecasts from the government and analysts.

Output fell as low as 9.43 million bpd in January due to extremely cold temperatures in Siberia and it took the country six months to catch up with the previous record of 9.65 million bpd in December 2005.

The Industry and Energy Ministry said Friday it expected production to pick up further in the third quarter of 2006, when the country would produce 122 million tons, or 9.72 million bpd.

June oil exports via pipeline monopoly Transneft fell by 80,000 bpd to 4.68 million bpd after hitting an all-time high in May, when oil firms rushed to evacuate their output ahead of a big increase in export duties in June.

Traders say oil exports could hit another record in July as oil export duties are set to rise again starting in August.

The energy ministry also said Friday that it had confirmed a record oil export schedule for the third quarter.

Oil output growth slowed to 2.7 percent in 2005 from 9 percent in 2004 and a record 11 percent in 2004.

The slowdown came as state-controlled companies, which analysts say are less efficient than private producers, regained control of a big part of the country's oil industry, notably through the demise of Yukos.

Russian oil reserves are also becoming depleted and the country needs to tap major new deposits in areas such as East Siberia to support growth.