03-09-08 Oil production in Russia in August fell by 0.4 % in comparison to July. Oil refining also decreased in Russia in August, in spite of lower prices in Russia and on the foreign market.
A record high duty oil export duty went into effect on August 1. Companies partially compensated for the falling oil production with income from increased natural gas production.

The central dispatch service of the fuel and energy complex published data on the production and export of fuel. In the first eight months of the year, oil production amounted to 325.15 mm tons, 0.6 % less than last year in the same period. Oil production in August was 41.53 mm tons, 0.8 % less than in August 2007.
Oil export in 2008 through August fell by 5.8 % compared to last year, to 136.26 mm tons. Oil export in August fell 4.5 % compared to August 2007 and 4.8 % compared to July 2008. Experts explain that the lower exports are due to falling prices internationally and higher profitability on the domestic market.

Oil prices are falling on the Russian domestic market. They fell almost by 40 % to rubles 6,800-7,000 per ton for September delivery. Wholesale prices for petroleum products fell almost 20 % in July and August. That movement began to be felt on the retail market in August.
Meanwhile, the production and export of natural gas were up. In the first eight months of the year, Russia produced 443.9 bn cm of gas, 3.1 % more than in the same period of last year. In August, 48.16 bn cm were produced, which is 1.6 % more than in August 2007 and 2.09 % less than in July 2008. In the same period, 111.1 bn cm of gas were exported, which is 16.4 % more than in the same period of last year. In August, 11.1 bn cm of gas were exported, 3.29 % less than in August 2007 and 14.35 % less than in July 2008.