Oil & Gas

14 Jun 2024

Russia's Oil Output Exceeded OPEC+ Quotas in May, Pledges to Meet Obligations

14 Jun 2024  by reuters   

A view shows the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel/File Photo Purchase Licensing Rights

Russia's energy ministry said on Thursday that its oil production in May exceeded quotas set by the OPEC+ group of major oil producing countries, while pledging to meet its obligations.

It did not provide production figures.

The ministry said in a statement that the issue of overproduction would be resolved in June and targeted levels would be achieved.

The Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, have made a series of deep output cuts since late 2022.

Under the OPEC+ accord, Russia's production quota stood at around 9.1 million barrels per day in May, including extra voluntary cuts, pledged by eight group members.

The excess production will be made up for during the compensation period until September 2025, the energy ministry also said on Thursday.

OPEC+ agreed on June 2 to extend most of its deep oil output cuts well into 2025 as the group sought to shore up the market amid tepid demand growth, high interest rates and rising U.S. production.

OPEC+ agreed to gradually phase out the cuts of 2.2 million bpd, pledged by eight members including Russia, over the course of a year from October 2024 to September 2025.


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