The following report from Reuters indicates Russia was able to increase oil production after a period in October after a period of apparently unsought reduction in oil output. 

Russian October oil output highest in year

Mon Nov 3, 2008 7:31am EST

MOSCOW, Nov 3 (Reuters) - Russian oil production in October rose to its highest in 2008, to 9.86 million barrels per day (bpd), data supplied by Russia’s Energy Ministry showed on Monday.

Oil exports from Russia via pipeline monopoly Transneft TRNF_p.RTS stood at 4.21 million bpd, slightly up from September, when they were 4.13 million bpd.

Production in September stood at 9.83 million bpd.

On Saturday the Russian government cut oil export duties, responding to the concerns of top producers who feared making losses on overseas shipments as Russia faces a decline in annual production for the first time in a decade.

However, the cut in the duty — set at $287 per tonne from Nov. 1, down from $372.20 — was far less than oil companies had wanted and it remained unclear if they would proceed with November export plans or redirect their oil to the domestic market to avoid the duty.

The government had already offered a series of tax breaks for new and depleted fields but oil majors said more incentives were needed to revive the growth which drove output to almost 10 million bpd from just 6 million bpd at the start of the decade.

World number two exporter Russia, alarmed by falling prices, has said it would not join OPEC oil producers’ efforts to regulate prices by cutting production, but has said it would like closer ties with OPEC and more influence on prices.

OPEC decided late last month to cut around 5 percent of world oil supply to put a floor under prices. The cut has had a limited impact as concerns about global recession continued to exert pressure on prices.

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(Writing by Amie Ferris-Rotman, editing by Anthony Barker)

Tags: peak oil investments

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