Rosneft net profit plunges almost 70% amid oil production surge
Photo: OPEC countries actively increasing oil production (Getty Images)
The net profit of state-owned company Rosneft fell by more than 68% in the first half of this year, down to $3 billion. The main reason was the increase in oil production by OPEC countries.
This was stated by the company’s CEO, Igor Sechin, according to Reuters.
"The first half of the year was characterized by a decline in oil prices, primarily due to overproduction of oil. The main reason is the active increase in production by OPEC countries, including Saudi Arabia, the UAE, Iraq, Kuwait," Sechin said on Saturday.
According to Igor Sechin, citing Rosneft data and figures from leading energy agencies, the global oil surplus is expected to reach 2.6 million barrels per day in the fourth quarter, before easing to 2.2 million barrels per day in 2026.
He also reiterated his criticism of the Russian Central Bank’s tight monetary policy, which, in his view, keeps the ruble artificially strong.
Reuters notes that Sechin’s remarks are the first in several months and reflect Moscow’s growing concern over the OPEC+ strategy of accelerating production growth.
Earlier, Russian Deputy Prime Minister Alexander Novak said that Russia would “survive any oil prices,” claiming the country’s economy is becoming less dependent on hydrocarbons.
In August, Russia raised its oil export plan following Ukrainian drone strikes on refineries. The target was increased to 2 million barrels per day.
According to Reuters, drone attacks in August knocked out the capacity responsible for about 17% of Russia’s oil refining.
August also marked the first monthly drop in oil prices since April, driven by geopolitical factors and expectations of oversupply.
