The department’s statement explains that in the first quarter of 2024, our country consistently exceeded the terms of the agreement and produced below the established quotas. In April, as part of voluntary cuts, Russian oil production was slightly above target levels. Overproduction is associated with the technical characteristics of a significant reduction in production.
Russia is fully committed to the OPEC+ agreements, plans to make up the shortfall in production plans and will soon present to the OPEC Secretariat its plan to cover a small deviation from voluntary production levels, the Energy Ministry stressed.
Under the terms of the OPEC+ agreement, Russia has an oil production quota of 9.95 barrels per day (b/d). But in March of last year, our country voluntarily committed to reducing production by another 500 thousand b/d. Starting in the second quarter of this year, it was decided to voluntarily add a reduction in production and exports of 471 thousand bpd. The distribution occurred as follows: in April, reduce production by 350 thousand b/d and exports by 121 thousand b/d. In May – by 400 thousand and 71 thousand b/d, respectively, and in June – to reduce production only by 471 thousand b/d. Thus, in April Russia’s production quota was about 9.1 million b/d, in May 9.05 million b/d and in June just under 9 million b/d.
In total, OPEC+ countries are reducing production under quotas by about 3.66 million bpd from the October 2022 level. Another 2.2 million bpd comes from voluntary commitments by countries to reduce production. That is, the total volume of remote oil supply from the world market is about 5.86 million b/d (decrease from 41.9 million b/d to 36.1 million b/d), about 6 % of the world oil market.
In addition to Russia, among OPEC+ participants in April this year, Iraq, Kazakhstan, Kuwait, the United Arab Emirates and Gabon exceeded production. Most countries have already said they will make up for excess production with additional cuts in the future.
Previously, the International Energy Agency (IEA) forecast that global oil consumption this year will grow by 1.2 million bpd. According to OPEC forecasts, global demand will increase by 2.25 million bpd.
