• 46 mins The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 6 days "And this is perhaps the most dangerous kind of government there can be."
  • 22 hours Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days Demonising fossil fuels has caused major grid problem in Australia
  • 22 hours "...too many politicians believe things that aren’t true." says Robert Rapier
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 328 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 5 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
China Considers Extending EV Tax Breaks

China Considers Extending EV Tax Breaks

Faced with declining EV sales,…

Russia Claims Its Compliance With OPEC+ Cuts Was Almost 100% In May

Russia was close to complying 100 percent with its oil production quota under the OPEC+ deal in May, Russian Deputy Prime Minister Alexander Novak said on Friday.

“It will be better than in April. Close to 100%,” Novak told reporters on the sidelines of an economic forum in Russia, as quoted by the TASS news agency.  

Russia, the key ally of Saudi Arabia in the OPEC+ oil production agreement, has regularly failed to comply with its quota under the deal. It was estimated to have achieved just a 91 percent compliance rate in April.

In May, Russia’s production of crude oil and condensate rose by 11.2 percent year over year to 44.21 million tons, or around 10.45 million barrels per day (bpd), according to official data quoted by Interfax earlier this week.

A week before the OPEC+ meeting reaffirmed on Tuesday plans to ease the total production cuts by 840,000 bpd in July, OPEC has had to remind once again the laggards in compliance in the deal to submit plans on how they will compensate for pumping above their respective quotas in recent months, sources at OPEC told Energy Intelligence.

Seven out of the ten producers that have busted their quotas have yet to submit plans to the OPEC Secretariat on how they plan to compensate for over-production. As per estimates by Energy Intelligence Russia is estimated to be the OPEC+ producer that has overproduced the largest volume between May 1, 2020, and April 30, 2021, pumping at 80,000 bpd above its quota on average for the year to end-April.

According to Energy Intelligence’s sources, Russia thinks that complying at around 95-96 percent is good enough. The other key member of the OPEC+ alliance, Saudi Arabia, has started to accept that the lack of full Russian compliance could be the price to pay for keeping Moscow firmly supporting and participating in the production cut deal.  

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on June 05 2021 said:
    Russian Deputy Prime Minister Alexander Novak is telling the truth when says Russia was close to complying 100% with its oil production quota under the OPEC+ deal in May.

    The rise in Russia’s production of crude oil and condensate was due to two reasons. The first is that OPEC+ has previously agreed to discount condensates from Russia’s total production as it didn’t consider they qualify as crude. The second reason is that OPEC+ has agreed in an earlier meeting to reduce Russia’s share in the cuts for April and May.

    But then there is the case of Saudi Arabia. Saudi Arabia has been saying that it hasn’t only been complying with its share of the cuts but it has also unilaterally made an additional million barrels a day (mbd) cut in its production and yet its exports have been going up. How does it square a circle? It does it by dipping into its stored crude oil and increase its imports. It is in effect a case when cuts aren’t real cuts.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News