Russia says it is meeting its OPEC+ oil production obligations

Russia has complied with its obligations to cut OPEC+ oil production since the end of August, Deputy Prime Minister Alexander Novak told Interfax.

“We should have complied. At least the data on that was available at the end of the month,” Novak said. Over the previous month, Russia exceeded its OPEC+ quota by 67,000 bpd, the publication said in its report, with the government attributing the excess production to “unique issues with the supply schedule, while levels in August and September should change this. “

In the first half of the year, Russia overproduced by about half a million barrels per day, which it must compensate for by the end of the year. The country previously said it would meet its obligations to OPEC+ through a combination of adjustments to oil production and exports.

OPEC+ agreed to cut crude supply last year and earlier this year extended them until 2025, although it left open the possibility that some of the cuts could be reversed in the final quarter of 2024, depending on market conditions. This was taken to mean high enough oil prices to justify an increase in production.

As the start of the final quarter approaches, speculation has mounted, with Reuters citing unnamed OPEC insiders as saying that some members will indeed begin to reverse next month’s output cuts. However, this has put pressure on oil prices, meaning unfavorable market conditions for a reversal of production cuts.

According to the Reuters report, OPEC had hoped that production cuts in Libya, of about 700,000 barrels per day, and the possibility of a US interest rate cut would offset the return to the market of about 180,000 bpd starting in October. The next meeting of the OPEC+ Joint Ministerial Monitoring Committee meets on October 2.

By Irina Slav for Oilprice.com

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