Page 157 - RusRPTJun24

down 180,000 b/d on month. The bulk of the declines came from Russia, which committed to implement a deeper output cut from April, and faced disruptions linked to Ukrainian attacks on its refineries and flooding in some oil producing areas. Russia lowered production by 130,000 b/d to 9.29mn b/d in April, missing its target of 9.099mn b/d, the survey found. Still, this is its lowest level since May 2022, shortly after Russia's invasion of Ukraine shocked energy markets.
Russia is the only member of the group that is increasing its voluntary cut from April, having pledged to gradually convert what previously were export cuts into actual production cuts by the end of the second quarter, bringing its quota in line with fellow OPEC+ co-chair Saudi Arabia's. Saudi Arabia continued to comply with its quota, cutting output by 10,000 b/d to 8.98mn b/d in April, the survey found. Compliance and quota levels have been a major source of tension within the group in recent months, leading to Angola quitting OPEC in late 2023. Iraq and Kazakhstan have also been forced to submit plans to compensate for over production in early 2024. Sources said Gabon, which also overproduced by 30,000 b/d according to the survey, has no plans to compensate for exceeding its quota. The survey showed OPEC+ countries implementing cuts produced 249,000 b/d above quota in April – a compliance rate of 96.97%. This compares with compliance of 97.9% in March. The alliance also produced above target in January and February, with compliance rates of 96.5% and 97.8%, respectively.
Iraq and Kazakhstan continued to produce above quota, despite pledging to compensate for their overproduction in early 2024. Iraq cut its production by 40,000 b/d to 4.24mn b/d in April, compared with its quota of 4mn b/d, the survey found. Production in Kazakhstan fell 20,000 b/d to 1.54mn b/d, but remained above its quota of 1.468mn b/d. The two countries overproduced by almost 1mn b/d in early 2024 and have committed to compensate for this between May and the end of December 2024. These plans may be amended
157 RUSSIA Country Report June 2024 www.intellinews.com