OPEC+ oil output target drops 250,000 bpd in Oct, including 10,000 bpd for Russia

MOSCOW. Oct 1 (Interfax) - The target for oil production by OPEC+ countries, including quotas, voluntary cuts and compensation for previous overproduction, is 35.24 million barrels per day in October, down by 247,000 bpd from 35.49 million barrels per day in September, Interfax calculations indicated.

In addition to the quotas for all OPEC+ members, eight member countries have been reducing production voluntarily since last year. This reduction is taking place in two "tranches."

They were supposed to begin to gradually phase out one of the cuts, by 2.2 million bpd, on October 1 in increments of 180,000-200,000 bpd per month, but in early September they decided to put off the increase in output by two months.

In addition, there is a compensation schedule for countries that exceeded their agreed production levels in the first half of 2024 - Iraq, Kazakhstan and Russia. Russia was supposed to start this schedule in October and reduce output by an additional 10,000 bpd.

For Kazakhstan, October is supposed to see the largest amount of compensation, a cut of 265,000 bpd, and the country plans to do maintenance at one of its largest fields over this period. Iraq is supposed to compensate 95,000 bpd in October for its previous overproduction.

Interfax estimates based on OPEC data indicate that OPEC+ countries exceeded their production target by 76,000 bpd in August.