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Russia’s crude oil production was down in July compared to June, the Russian Energy Ministry said on Friday, and more cuts are coming.
Russia’s oil production came in at 67,000 bpd above its quota for July, but was down in July compared to June due to “one-off supply scheduling issues”. According to the Energy Ministry, August and September production levels will “remedy this.”
Russia had already agreed to compensate for everything it has overproduced since April of this year. The compensatory cuts will come in October and November of this year, and from March to September next year, the Ministry said in the Friday press release.
“Russia reaffirms its commitment to its compensation schedule which has earlier been submitted to the OPEC Secretariat and urges other OPEC Plus countries who have submitted their compensation plans to adhere to them,” the Ministry said.
OPEC+ has had a difficult time getting all of its members to reduce production to the targeted levels that the group agreed to in April, with chronic laggards such as Iraq, the UAE, Kazakhstan, and Russia dragging down the performance of the group. The OPEC part of the OPEC+ group saw its production dip slightly for July, coming in at 26.99 million barrels per day, a Bloomberg survey showed earlier this month, but Iran and Venezuela carried the bulk of the reduced output, and they are exempt from the production quotas.
OPEC is set to release its official production figures for July in its Monthly Oil Market Report on Monday.
OPEC’s Joint Ministerial Monitoring Committee said in a press release following its most recent meeting that OPEC members achieved “high overall conformity” to production quotas both in May and June.
