Russia will cut oil production again in 2024

Russia's oil production quota under the OPEC+ agreement will be reduced by 650 thousand barrels per day in 2024.

Source: Russian service of Radio Liberty

According to the publication, this follows from decisions made at a meeting of representatives of OPEC+ countries in Vienna on June 4.

At the same time, according to Russian Deputy Prime Minister Alexander Novak, Russia is not abandoning its voluntary commitment to produce 500,000 barrels of oil per day less than the quota.

For 2023, Russia's quota is 10478 thousand barrels per day, and in 2024 it will be reduced to 9828 thousand (and, taking into account the voluntary reduction, to 9328 thousand).

At the same time, the quota of Saudi Arabia, the largest OPEC country, for 2024 remained unchanged at 10478 thousand barrels. In total, the OPEC+ countries agreed to reduce oil production by about 1.5 million barrels per day next year, excluding voluntary cuts undertaken by individual countries.

The purpose of the cuts is to stop the fall in oil prices on the world market. Saudi Arabia will reduce its production by 1 million barrels per day for a month to achieve price growth.

At a press conference after the OPEC+ meeting, Novak said that Russia and Saudi Arabia have no disagreements.

Author - Serhii Kolomiets, 05/06/2023