This compared with a previous record high of 10.30
million bpd hit in September.
But gas output at the world's top producer, Gazprom,
slumped year-on-year on the back of high gas prices.
October was the first month of the new "60-66"
taxation regime for the Russian oil industry, which cut duties on crude oil and
some refined products to stimulate output of high-grade oil products and
crude.
Hydrocarbons are a major source of state revenue, which
must be replenished after an increase in spending ahead of parliamentary
elections in December and a presidential vote in March.
Russia's third-largest oil company TNK-BP, half-owned by
BP
output edging up 0.2 pt month-on-month to 6.27 million tons.
Overall daily natural gas production increased 13 percent
to 1.80 billion cubic meters (bcm) last month from 1.59 bcm in September. Gas
output at the world's largest natural gas producer, Gazprom, rose 15 percent to
1.35 bcm a day month-on-month basis.
But Gazprom's output dropped 9.2 percent from October
2010 as buyers in Europe struggled to cope with high gas prices -- approaching
$500 per 1,000 cubic meters — and had bought volumes in advance.
"It is the lowest October production in the history
of Gazprom," Mikhail Korchemkin of East European Gas Analysis said.
The state corporation has been suffered from competition
with independent producers including Novatek, whose production jumped by 54
percent year-on-year to an all time high of an all time high of 4.8 bcm last
month.
Gazprom, which covers a quarter of Europe's gas needs, is
also facing rivalry with spot market, where prices are cheaper, and alternative
fuels, such as liquefied natural gas. It still aims to increase its gas export
to Europe to 155 bcm this year from around 138.6 bcm in 2010.
