Russia’s compliance with OPEC+ deal higher compared with OPEC states in July, says IEA
Moscow. Compliance with the crude production cut agreement by OPEC+ countries went down in July to 89% of the planned volume from 108% in June due to growth of output in certain OPEC states, whereas Russia’s compliance turned out higher than that of the United Arab Emirates and Iraq, for example, the International Energy Agency said in its Oil Market Report on Thursday.
OPEC countries boosted crude oil production by 1.23 mln barrels per day in July, due to which their compliance dropped to 87% from 112% in June. The high result of the summer’s first month was due to the fact that Saudi Arabia, the UAE and Kuwait additionally reduced 1.1 mln barrels per day to offset the weak compliance of other states. However, they did not keep those additional volumes in July and restored output. Particularly, Saudi Arabia increased production by 0.89 mln barrels per day to 8.44 mln barrels per day (the kingdom’s compliance equals 102%) and the UEA boosted output by almost 0.3 mln barrels per day to 3 mln barrels per day (compliance level fell to 23%). Compliance of Iraq, Congo and Gabon amounted to 85%, 47%, and 40%, respectively, according to the IEA.
Russia’s compliance amounted to 96% of the planned volume totaling 8.6 mln barrels per day, while all in all non-OPEC countries’ compliance was 92% in July, informs TASS.
The revised OPEC+ agreement on crude output cuts came into force on May 1. The alliance’s countries reduced oil production by 9.7 mln barrels per day until the end of July with the quota of each country slashed by 23% of the basic level. Starting August, the cuts were eased, with only 7.7 mln barrels per day to be reduced by the end of the year. Russia, which cut production by 2.5 mln barrels per day in May-June, may boost it by 0.5 mln barrels per day from August. However, the country's Energy Minister Alexander Novak said earlier that real growth would total 0.4 mln barrels per day.