Russia says it's overcomplying with OPEC Production Quota

Russia's oil production in June was 50,000 bpd below the level Moscow had promised under the OPEC agreement and the non-OPEC production agreement, said Russian energy minister Alexander Novak on Monday, which was carried by the Russian news agency Interfax.

As part of the OPEC + production cuts between January and June, Russia takes the lion's share of the non-OPEC cuts and pledges to reduce production by 230,000 bpd from the October post-Soviet record level of 11,421 million bpd to 11,191 million bpd.

According to Novak, Russia's production in June was 278,000 bpd lower than the reference level in October, or 50,000 bpd below its quota.

Russia's oil production in May was 1[ads1]1.15 million bpd, says Reuters industrial sources earlier. This 11.15 million bpd level – a calculated figure that uses a tonne to barrel conversion – is under Russia's obligation under the OPEC + agreement. For June, Russia's oil production is estimated at 11.13 million bpd.

The current agreement between OPEC and its Russian-led non-OPEC partners expired on June 30, and the parties meet in Vienna on Monday and Tuesday to discuss the fate of the agreement. OPEC and Allies signal that a nine-month extension of the cuts at their current level is almost a preliminary conclusion.

Finally, Russia followed its share of the production slumps as part of the OPEC + agreement, but not by election. Russia's oil production continued to be lower in May, as exports via the Druzhba oil pipeline were limited due to a pollution problem, which helped Russia finally fall in line with oil production.

On average, Russia's oil production amounted to 11,126 million bpd between May 1 and 26, two industry sources told Reuters. This compares with average production of 11,147 million bpd between 1 and 21 May.

By Tsvetana Paraskova for

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