OPEC maintains forecast for oil production in Russia at 10.3 million b/d in 2023

The OPEC forecast for the production of liquid hydrocarbons in Russia for 2023 remained at the level of 10.3 million b/d. The organization still expects a decline in production in the Russian Federation this year by 0.75 million bpd, follows from the April report (.pdf) OPEC.

“It is worth noting that this expected reduction takes into account the recently announced additional voluntary production adjustments until the end of 2023. Annual growth remained unchanged from the previous monthly estimate.

According to OPEC, in February this year Russia became the largest supplier of oil to China and India. The Russian Federation provided 19% of Chinese oil imports, Russian oil supplies to India accounted for 38% of the country’s total hydrocarbon imports, the report says. In February, Russia increased oil production by 175,000 bpd to 11.4 million bpd, the report said.

In addition, the organization maintained its forecast for global oil demand growth at 2.3 million b/d. The average global demand for liquid hydrocarbons is still marginally revised in the April report, from 101.9 million b/d to 101.89 million b/d.

It also follows from the April report that OPEC countries reduced oil production in March by 86,000 bpd to 28.7 million bpd. At the same time, OPEC+ countries, with the exception of Iran, Libya and Venezuela, reduced oil production by 124 thousand b/d, to 24.374 million b/d, which is 1.042 million b/d below the agreements.

April 2 Algeria, Iraq, Kazakhstan, Kuwait, United Arab Emirates, Oman, Russia and Saudi Arabia announced about voluntary decline oil production. We are talking about a decrease of 1 million barrels per day from May until the end of the year, while Russia will extend for the same period, the reduction in production by 500,000 barrels already started in March.

How the decision to cut OPEC+ oil production affected the cost of Russian oil – in the material “Urals broke through the ceiling”.

Erdni Kagaltynov