OREANDA-NEWS. March 04, 2010. Russian crude production was up marginally MoM in February, while daily gas output slightly decreased MoM, according to CDU-TEK preliminary energy output volume data published yesterday. Notwithstanding, crude output in January-February 2010 was reportedly up 3.3% YoY, whereas gas output jumped 17.3% YoY, reported the press-centre of OTKRITIE Financial Corporation.

Russian oil and gas companies produced 38,497Mt of crude oil and gas condensate in February, which is equivalent of 10,037MBD, only 3MBD above January 2010 levels. Gas output amounted to 57.95bcm, which represents a 1.4% reduction on the January daily rate, but a visible increase against the 50.4bcm produced in February 2009.  

View: Robust gas output figures support our view that domestic gas demand should see a rapid recovery in 2010 owing to the exceedingly cold winter. We believe this bodes well for Gazprom and NOVATEK, as strong volume growth will be coupled with higher domestic and export gas prices. We reiterate our positive view on Russian gas stocks in light of the encouraging volume statistics.