VIENNA (Realist English). OPEC+ is working to compensate for the drop in oil production in Russia, which has fallen by about 1 million barrels per day as a result of Western sanctions against Moscow. This is reported by Reuters with reference to two sources in the cartel.
The agency’s interlocutor from the Persian Gulf said that Moscow might agree with other producers compensating for its lower production, and the corresponding decision will “very likely” be made at a meeting to be held on June 2.
According to various estimates, the European Union’s ban on the supply of seaborne Russian oil can reduce production and exports from Russia by 2-3 million barrels per day. In April, Russia was already producing below the OPEC+ target of 10.44 million barrels per day with daily production of 9.3 million barrels.
The Financial Times suggests that Saudi Arabia and the UAE might increase production amid growing sanctions pressure on Moscow. Production increases that are scheduled for September would be brought forward to July and August, the Financial Times source said.
Saudi Arabia, the top producer in OPEC, has previously rebuffed calls by Washington to boost oil output by more than the gradual increases it has agreed to as a member of the OPEC+ group which includes Russia.
Russia is the world’s third largest oil producer after the United States and Saudi Arabia and the second largest exporter of crude after Riyadh. China is the largest buyer of Russian oil. According to Kpler, from March to May, Beijing bought 14.5 million barrels from Moscow — three times more than in the same period last year.