Russia disrupts OPEC+ plan to cut oil production. While the entire cartel is reducing production volumes, Russia, on the contrary, has sharply increased production. This is evidenced by the statistics of the consulting company Kpler, which is cited by Bloomberg.
In November, the oil cartel cut its total production by about 900,000 bpd. The total volume of oil exports to world markets fell by 361.2 thousand barrels of oil per day, while Russia, against this background, not only increased oil production to a maximum of 8 months (10.9 million barrels), but also increased total oil exports by 539 .2 thousand barrels per day. Thus, Russia not only took a share of partners under the OPEC + agreement, but also went against the will of the cartel, which planned to reduce production by 0.5-1 million barrels per day.
The agreement assumed that all members of the cartel would commit themselves to reductions. Usually, OPEC members distribute quotas in proportion to market share, there are exceptions for the leaders of the cartel – Saudi Arabia, which often takes on complex issues and sacrifices its own market share, and Russia, which, due to high production, also assumed increased obligations earlier. In October, the leaders of the cartel insisted on cutting production in order to keep oil prices at an acceptable level of $85 per barrel.
“Russian oil producers are doing something that contradicts the main idea of the cartel, namely, they are increasing production,” said Kpler analyst Victor Katona.
One of Riyadh's arguments was concerns about oil production in Russia – the kingdom believed that due to sanctions, it could be significantly reduced. Russia was also in favor of reducing production, insisting on reducing supply and thus maintaining relatively high prices. The next meeting of OPEC members is scheduled for Sunday, December 4. It is expected that members of the cartel may ask Moscow why it increased production. True, as the agency notes, Russia will soon face the introduction of oil sanctions, the effect of which, among other things, will have to be assessed by the cartel.