Russia agrees to continue oil output cuts under OPEC+ commitments
Russia plans to keep reducing its oil production to meet obligations under the OPEC+ framework. Deputy Prime Minister Alexander Novak announced the plan, noting that the reduction targets are part of the country’s ongoing alignment with the group’s agreements. This update was reported by TASS as part of Russia’s broader energy strategy.
Officials project that by June this year Russia’s daily oil output will settle at about 9 million barrels per day. This represents the stated goal for mid-year and reflects the impact of the voluntary cuts already agreed with partner producers.
Novak outlined a monthly cadence for the reductions. In April, the forecast shows a drop of 350 thousand barrels per day in production and a concurrent decline of 121 thousand barrels per day in exports. In May, the reductions are expected to be larger: production would fall by 400 thousand barrels per day and exports by 71 thousand barrels per day. By June, the anticipated declines would reach around 471 thousand barrels per day for both production and exports, marking a continuing tightening of supply as part of the agreed quota schedule.
The current commitments build on a prior voluntary cut of 500 thousand barrels per day that Russia enacted in April 2023. This quota was slated to stay in effect through the end of December 2024, reinforcing the broader supply management strategy in conjunction with OPEC+ partners.
Beyond Russia’s oil policy, significant regional energy dynamics have influenced forecasts elsewhere. Earlier reports from the United Arab Emirates indicated a downgrade in GDP growth projections tied to declines in oil production. In Europe, demand for gas has tightened markets as utilities seek alternative supplies. Analysts in North America are monitoring these shifts closely, given potential implications for energy prices, inflation, and broader economic activity across Canada and the United States. These developments underscore the ongoing linkage between oil output decisions and energy security in Western economies, including Canada and the United States.
Overall, the evolving production plan signals a concerted effort to balance market stability with the need to manage export levels. Market observers note that the effectiveness of these cuts will depend on how closely production aligns with the target trajectory and how well the group coordinates with non-OPEC producers to sustain disciplined supply management. The situation remains dynamic as countries adjust to evolving demand conditions, geopolitical factors, and ongoing commitments under OPEC+. (Source: TASS)