Russian Deputy Prime Minister Alexander Novak stated that there is no friction between Russia and OPEC+ regarding the country exceeding its crude production quotas. He assured that Russia would compensate for any overproduction and adhere to the agreed output levels moving forward.
Recently, Russia announced that its crude oil production in June surpassed the quotas set by the OPEC+ group, raising concerns among oil traders about potential tensions with Saudi Arabia, the leading member of OPEC. Since late 2022, OPEC+ has implemented significant output cuts to stabilize oil prices.
In response to questions about any dissatisfaction from Arab members of OPEC+, Novak emphasized, “We have no friction,” and described the overproduction as minimal, indicating it would be rectified. He mentioned having discussions with Saudi officials, although he did not provide specific details about those conversations.
Saudi Arabia is particularly sensitive to oil prices, as its economic growth is projected to be among the slowest in the Gulf Cooperation Council this year due to prolonged output cuts.
While Russia’s production figures are not publicly disclosed, industry sources suggest that its July crude oil export plan for western ports is set at 1.7 million barrels per day (bpd), a decrease from June’s 2.1 million bpd. Meanwhile, refinery runs are expected to rise to 5.36 million bpd, up from 5.16 million bpd.
According to OPEC+ agreements, Russia’s production quota for the period from June to September was set at 8.98 million bpd. However, the International Energy Agency reported that Russian production in June was around 9.22 million bpd, slightly down from May.
Novak expressed confidence in the upcoming OPEC+ joint ministerial monitoring committee meeting on August 1, anticipating productive discussions focused on market balance and adherence to agreements.
OPEC has also indicated that Kazakhstan, Iraq, and Russia will implement plans to reduce output monthly through September 2025 to offset cumulative overproduction from earlier this year.