Russian oil output rises in July, misses OPEC+ target — Ifx

Production was up from 9.32 million bpd in June. (FILE/SHUTTERSTOCK)
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Updated 03 August 2020

Russian oil output rises in July, misses OPEC+ target — Ifx

  • In tons, Russian oil and gas condensate production rose to 39.63 million in July from 38.16 million in June
  • Russia usually produces 700,000 to 800,000 bpd of gas condensate

MOSCOW: Russian oil and gas condensate production increased to 9.37 million barrels per day (bpd) in July, Interfax news agency reported on Sunday, citing energy ministry data, indicating it missed its output target under a global deal.
Production was up from 9.32 million bpd in June.
From August, the output cuts — agreed between the Organization of the Petroleum Exporting Countries (OPEC) other major producers including Russia, a group known as OPEC+ — are due to be eased.
In tons, Russian oil and gas condensate production rose to 39.63 million in July from 38.16 million in June, Interfax reported.
Under the OPEC+ agreement, Moscow pledged to reduce its output to around 8.5 million bpd in May-July to support oil prices.
The deal does not include output of gas condensate, a light oil.
Russia usually produces 700,000 to 800,000 bpd of gas condensate. That means that excluding gas condensate, Russia could have produced around 8.57 million to 8.67 million bpd of crude oil in July.
The cuts under the global deal should be eased starting from August thanks to a recovery in oil prices. Russia has said it would increase its oil production by 400,000 bpd.
Russian oil exports outside the former Soviet Union stood last month at 15.72 million tons, down 27.1% from July 2019. In barrels per day, exports reached 3.72 million, according to Interfax.
The news agency also said on Sunday that Russian natural gas output reached 50.33 billion cubic meters in July, down 7.9% from a year earlier.


Huawei: Smartphone chips running out under US sanctions

Updated 08 August 2020

Huawei: Smartphone chips running out under US sanctions

  • Huawei is at the center of US-Chinese tension over technology and security
  • Washington cut off Huawei’s access to US components and technology last year

BEIJING: Chinese tech giant Huawei is running out of processor chips to make smartphones due to US sanctions and will be forced to stop production of its own most advanced chips, a company executive says, in a sign of growing damage to Huawei’s business from American pressure.
Huawei Technologies, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. The feud has spread to include the popular Chinese-owned video app TikTok and China-based messaging service WeChat.
Washington cut off Huawei’s access to US components and technology including Google’s music and other smartphone services last year. Those penalties were tightened in May when the White House barred vendors worldwide from using US technology to produce components for Huawei.
Production of Kirin chips designed by Huawei’s own engineers will stop Sept. 15 because they are made by contractors that need US manufacturing technology, said Richard Yu, president of the company’s consumer unit. He said Huawei lacks the ability to make its own chips.
“This is a very big loss for us,” Yu said Friday at an industry conference, China Info 100, according to a video recording of his comments posted on multiple websites.
“Unfortunately, in the second round of US sanctions, our chip producers only accepted orders until May 15. Production will close on Sept. 15,” Yu said. “This year may be the last generation of Huawei Kirin high-end chips.”
More broadly, Huawei’s smartphone production has “no chips and no supply,” Yu said.
Yu said this year’s smartphone sales probably will be lower than 2019’s level of 240 million handsets but gave no details. The company didn’t immediately respond to questions Saturday.
Huawei, founded in 1987 by a former military engineer, denies accusations it might facilitate Chinese spying. Chinese officials accuse Washington of using national security as an excuse to stop a competitor to US tech industries.
Huawei is a leader among emerging Chinese competitors in telecoms, electric cars, renewable energy and other fields in which the ruling Communist Party hopes China can become a global leader.
Huawei has 180,000 employees and one of the world’s biggest research and development budgets at more than $15 billion a year. But, like most global tech brands, it relies on contractors to manufacture its products.
Earlier, Huawei announced its global sales rose 13.1 percent over a year ago to $65 billion in the first half of 2020. Yu said that was due to strong sales of high-end products but gave no details.
Huawei became the world’s top-selling smartphone brand in the three months ending in June, passing rival Samsung for the first time due to strong demand in China, according to Canalys. Sales abroad fell 27 percent from a year earlier.
Washington also is lobbying European and other allies to exclude Huawei from planned next-generation networks as a security risk.
In other US-Chinese clashes, TikTok’s owner, ByteDance, is under White House pressure to sell the video app. That is due to fears its access to personal information about millions of American users might be a security risk.
On Thursday, President Donald Trump announced a ban on unspecified transactions with TikTok and the Chinese owner of WeChat, a popular messaging service.