Russia may reduce oil production due to OPEC+ agreement 06.06.2024, 19:27

Russia adjusted its oil production forecast in 2024 to 505-515 million tonnes, 3-5% less than the previous year. writes about this “Kommersant”.

The Russian Federation produced less than 515 million tons in the crisis year of 2020, when there was an unprecedented decrease in oil production within the framework of OPEC +. In February, the Ministry of Energy had planned production as 523 million tons.

“Production in the Russian Federation this year will be 505-515 million tons, I think it will be close to 515 million tons. More precisely, it will become clear when the adjustments are made at the end of the year,” Deputy Prime Minister Alexander Novak said at SPIEF 2024.

Therefore, production may fall to its lowest level since 2020, when OPEC+ countries agreed to reduce production by 9.7 million barrels per day by August and 7.7 million barrels per day by the end of the year, due to the collapse in prices. Then the Russian Federation produced 512.8 million tons.

The Russian Federation has stopped publishing production data since 2023. This is due to participation in the new OPEC+ agreement to limit production. In April-June, the Russian Federation promised to reduce production by 350-471 thousand barrels per day and exports by 71-121 thousand barrels. OPEC+ recently extended its total cut by 2.2 million barrels per day into the third quarter.

Additionally, the Deputy Prime Minister noted that there has been a decrease in market discounts for Russian oil.

“We sell at prices including freight plus a small premium,” he said.

According to their forecasts, global demand is expected to increase to 110-115 million barrels per day by 2030.

Previously at RDIF appreciated Interruptions in Russia’s natural gas supply will harm the EU.

Previously in Hungary denied Join the West’s energy sanctions against the Russian Federation.