SunSirs: After Exceeding the Production Quota in May, Russia Vowed to Fulfill the OPEC Target

https://www.chemnet.com   Jun 14,2024 SunSirs

According to foreign news on June 13, the Russian Ministry of energy said on Thursday that after exceeding the target production set by the organization of Petroleum Exporting Countries (OPEC) and its allies, that is, OPEC, in May, Russia will reach its production quota in June.

The Ministry of energy said that based on the data from independent sources, Russia's output in may slightly exceeded the quota set by OPEC, and added that "the problem of excess production will be solved in June, and the target will be reached at that time." Russia's excess production since April will be fully compensated in the future, and the excess production will be offset in the compensation period until the end of September 2025.

The Department also reiterated: "Russia remains fully committed to the basic principles of the OPEC agreement."

Last month, Russia said that its production in April "slightly exceeded" the oil production target set by OPEC and would compensate for the excess production.

Last week, the country's Deputy Prime Minister Alexander Novak said that according to the OPEC agreement, Russia continued to reduce oil production in May. This is also Russia's attempt to reassure the market that OPEC oil producing countries are committed to complying with the agreement and stabilizing the oil market.

Tass quoted Novak's simplification on the sidelines of a meeting as saying: "we will continue to reduce production in April in accordance with the OPEC agreement."

When asked about the exact number of production in May, Novak said that the scale of production reduction would be clear in about a week.

When OPEC member states announced their intention to extend the production reduction to the second quarter in early March, Russia changed its production/export reduction plan, saying that it would reduce the supply by 471,000 barrels/day in the form of production reduction and export reduction in the second quarter.

In April, Russia promised to reduce production by 350,000 barrels per day and export by 121,000 barrels per day. In May, the supply reduction of 471,000 barrels per day will be reflected in the form of a reduction in production of 400,000 barrels per day and a reduction in exports of 71,000 barrels per day. In June, Russia's supply will be reduced by 471,000 barrels/day, which is entirely in the form of production reduction.

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