Russia overshot OPEC+ target by 560,000 bpd in April-June

MOSCOW. July 10 (Interfax) - Russia produced 9.139 million barrels of oil per day in June, down 114,000 bpd from 9.253 million bpd in May, OPEC said, quoting secondary sources.

In keeping with its voluntary commitments to cut output, Russia should have produced 9.05 million bpd in May and 8.979 million bpd in June, so it exceed those targets by 200,000 bpd in May and 160,000 bpd in June.

OPEC also revises data retrospectively - it said in its June report that Russia produced 9.182 million bpd in May. Data for April were unchanged at 9.301 million bpd, meaning that the quota was overshot by 200,000 bpd.

Russia overshot the target by 560,000 bpd for April-June.

Russia permitted "a limited excess of the agreed levels" in May under the OPEC+ deal, the Energy Ministry has said.

The matter of overproduction should be resolved in June by achieving the target levels," the ministry said.

"Production volumes that have been exceeded since April should be fully adjusted going forward. Excess output should be offset during the compensation period that continues until the end of September 2025. An updated schedule on offsetting production will be sent to the OPEC Secretariat in the near future," the ministry said.

Russia's official OPEC+ oil production quota for 2024 is 9.95 million barrels per day or 9.45 million bpd, given the voluntary production cut announced in April 2023 for the whole of 2024.

From the second quarter, Russia said it would reduce production and exports in variants of 471,000 bpd: in April, Russia was supposed to reduce production by 350,000 bpd and exports 121,000 bpd and in May by 400,000 bpd and 71,000 bpd, respectively while in June it will only reduce production, by 471,000 bpd.

That is, in April, Russian production should have been 9.1 million bpd, in May - 9.05 million bpd and in June - 8.979 million bpd, which corresponds to Saudi Arabia's quota.