Oil & Gas

Russian Deputy Prime Minister Alexander Novak affirmed that Russia maintained its reduction in oil production throughout May in line with the OPEC+ agreements, underscoring the ongoing dedication of OPEC+ producers to stabilize the oil market. Speaking at the St. Petersburg International Economic Forum, Novak assured reporters that the adherence to the agreed-upon cuts persisted, signaling Russia's commitment to the collective effort aimed at market balance. While specific figures for May's oil production were not immediately available, Novak mentioned that the extent of the output reduction would be clarified within approximately a week.

In March, when OPEC+ members announced the extension of production cuts into the second quarter, Russia adjusted its reduction strategy, targeting a decrease of 471,000 barrels per day (bpd) through cuts in both production and exports. This strategy involved reducing production by 350,000 bpd and exports by 121,000 bpd in April, followed by a reduction of 400,000 bpd in production and 71,000 bpd in exports for May. Moreover, Russia planned to entirely implement the 471,000 bpd reduction from production in June. These adjustments aimed to address the market's fluctuations while ensuring compliance with the OPEC+ agreement.

In light of April's slight overproduction, attributed to technical challenges in implementing significant production cuts, Russia affirmed its unwavering commitment to the OPEC+ accords. The Russian Energy Ministry reiterated its dedication to compensating for production shortfalls, emphasizing the forthcoming submission of a plan to offset minor deviations from voluntary production levels to the OPEC Secretariat. This reaffirmation of commitment underscores Russia's determination to uphold the cooperative efforts of the OPEC+ coalition in maintaining market stability.