regulation of oil production within OPEC+ will remain in 2024 – Kommersant

President Vladimir Putin, during a press conference as part of the plenary session of Russian Energy Week, said that next year the need to regulate oil production within OPEC+ will continue. According to him, the parameters of the deal may change depending on the situation on the world market and demand for oil. The President noted that all decisions within OPEC+ are made collectively by the parties to the agreement.

“Even if there are disagreements, we always look for consensus. The Crown Prince of Saudi Arabia also plays a big role here; he works very actively in this regard, very professionally. Today everything looks like we will continue cooperation,” the president said. The event will be broadcast by the Rossiya 24 TV channel.

According to Vladimir Putin, Russia “has no desire to cheat, to deceive,” but there is a desire to come to a common decision. “A solution that “a” benefits everyone and “b” benefits global energy markets. I believe this is true. And this level of trust is very important. Well, I hope it’s the same on the other side,” he said, noting that it is currently difficult to predict the pace of development of the global economy and market needs.

In June, representatives of Russia, Saudi Arabia and other OPEC+ members at a face-to-face meeting in Vienna agreed to extend restrictions on oil production until 2024. For Russia, a quota of 9.828 million bpd has been determined. Taking into account the extension of the voluntary production reduction by 500 thousand b/d until 2025, Russia has pledged to reduce production to 9.3 million b/d. In August, Deputy Prime Minister Alexander Novak reported that Russia would reduce oil exports by 300 thousand bpd in September. In September, Mr. Novak reported that the reduction by 300 thousand b/d would last until the end of 2023.

According to the International Energy Agency (IEA), restrictions on oil production by OPEC+ countries will lead to a significant shortage of oil on the world market in the second half of 2023. According to the September IEA report, in August Saudi Arabia’s production amounted to 8.98 million b/d, decreasing by 100 thousand b/d, while in Russia it remained at the July level of 9.48 million b/d. According to analysts, oil production in OPEC+ countries amounted to 22.87 million bpd, which is 2.55 million bpd less than the target value.

Read more in the Kommersant article. “IEA records underfilling”.