Page 143 - RusRPTJul24

countries' production volume amounted to 35.701 mln bpd. Taking into account all the voluntary production cuts in May, OPEC+ countries were supposed to produce 35.595 mln bpd.
From the Q1 of 2024, several alliance countries, including Russia and Saudi Arabia, are voluntarily reducing oil production by a total of 2.2 mln bpd to balance the market. Initially, the measure was supposed to be valid only during the Q1, but then it was extended to both the Q2 and Q3.
Besides that, a number of OPEC+ countries, also including Russia and Saudi Arabia, are voluntarily reducing oil production by a total of 1.66 mln bpd from the spring of 2023 to the end of 2025.
OPEC+'s decision to gradually exit the oil production freeze sent oil prices into a fall sharply in the first week of June. A barrel of Brent fell in price by almost 7.8% over the week, to its lowest level since January. For Russia, the price of $77 per barrel is quite comfortable, but for Joe Biden it is just a gift: if oil does not rise back, lower gasoline prices could help him in the elections in November. Brent oil fell by 1% on June 4 , to $77.6. Contrary to analysts' expectations, the cartel decided to begin reducing restrictions on oil production from October 2024. By the beginning of 2025, 750 thousand barrels per day will return to the market - oil producers will lift a third of restrictions by 2.2mn bpd. These restrictions are due to end by October next year.
● Transport & exports
Russian Deputy Prime Minister Alexander Novak has referred to the oil pipeline project parallel to Power of Siberia-2 as promising, adding that its capacity might total up to 30mn tonnes. "A promising project that may be implemented. It is currently at the formation stage," he told reporters on the sidelines of the St. Petersburg International Economic Forum (SPIEF). "Up to 30mn tonnes," he noted.
Russian oil supplies via the territory of Belarus will continue, Foreign Minister Peter Szijjarto told reporters on the sidelines of the St. Petersburg International Economic Forum (SPIEF). Hungary is interested in continuation of such supplies since there is no alternative, Szijjarto noted.
Russia’s giant Gazprom saw its natural gas exports via pipeline to Europe soar by 39% year-over-year in May. Last month, Gazprom’s pipeline flows to European customers jumped to 89.5 million cubic meters, up by 7.3% from April and a 39% increase compared to May 2023.
● Partners
India and China were the top destinations for Russian seaborne fuel oil and vacuum gasoil (VGO) exports in May, traders said and LSEG data showed. Russian fuel oil and VGO seaborne exports last month rose 12%
143 RUSSIA Country Report July 2024 www.intellinews.com