Russia has met its OPEC+ oil production cut targets as of the end of August, Deputy Prime Minister Alexander Novak told Interfax.
“We should be in compliance,” Novak stated. “Data at the end of the month supports this.” Last month, Russia exceeded its OPEC+ quota by 67,000 barrels per day (bpd), which was attributed to temporary issues with the supply schedule. The government expects production levels in August and September to address this excess.
Earlier this year, Russia overproduced by about half a million barrels daily, which it needs to make up by the end of the year. The country plans to meet its OPEC+ commitments through adjustments in oil production and exports.
OPEC+ agreed last year to cut crude oil supply and extended these cuts into 2025. However, they allowed for the possibility of reversing some cuts in the final quarter of 2024 based on market conditions, such as high oil prices.
As the final quarter approaches, there is growing speculation that some OPEC members may start reversing the production cuts from next month. This has impacted oil prices, making it less favorable to reverse cuts.
According to Reuters, OPEC hopes that disruptions in Libyan production, which have cut about 700,000 barrels daily, and a potential U.S. interest rate cut will offset the return of approximately 180,000 bpd to the market starting in October. The Joint Ministerial Monitoring Committee of OPEC+ will next meet on October 2.