Oil production at the end of the year will decrease only due to obligations in OPEC+ – Kommersant

Deputy Prime Minister Alexander Novak explained the decline in oil production in Russia by 1.5% to obligations within OPEC+. According to him, by the end of 2023, oil production in Russia will be 527 million tons, or only 2% less than last year.

“Last year there were 535 million tons – 2% more. This year we will produce approximately 527 (million tons). But this reduction of 8 million tons – approximately 1.5% – is associated only with our interactions within OPEC+. In principle, we have much greater potential: we have free capacity, we already have Russian technologies,” said Mr. Novak (quoted by Interfax).

In June, Russia, Saudi Arabia and other OPEC+ members agreed to extend oil production restrictions until 2024. For Russia, the quota is set at 9.828 million bpd. The voluntary production cut was extended until 2025: Russia pledged to reduce production to 9.3 million bpd. In September, Alexander Novak reported that the reduction by 300 thousand b/d would last until the end of 2023.

At Russian Energy Week, President Vladimir Putin statedthat regulation of oil production within OPEC+ will continue in 2024. According to the president, OPEC’s decision may change depending on the situation on the world market and demand for oil.

Read more about the situation on the oil market in the material “IEA records underfilling”.

Anastasia Larina