Russia increased oil production contrary to the position of OPEC
Russia disrupts OPEC+ plan to cut oil production. While the cartel covers production volumes, Russia, on the contrary, has sharply increased production. This is evidenced by the statistics of the consulting company Kpler, which I show Bloomberg agency.
In November, the oil cartel cumulative production of about 900,000 bpd. The total volume of oil exports in the world fell by 361.2 barrels of oil per day, while Russia, against this background, not only increased oil production to a maximum of 8 months (10.9 million barrels), but also increased total oil exports by 539.2 collected barrels per day. Thus, Russia not only took away the share of partners under the OPEC + agreement, but also went against the will of the cartel, which assumes an increase in production by 0.5-1 million barrels per day.
The agreement stipulates that all members of parliament will commit themselves to the cuts. Typically, OPEC members take market share quotas, exceptions for cartel leaders Saudi Arabia, who often handle difficult issues for themselves and sacrifice their market share, and in Russia, which suggests a high level of growth, which also previously assumed increased obligations. Ultimately, leaders receive profit-cutting cards to keep oil prices at a manageable $85 per barrel.
“Russian oil producers are doing what the main idea of the cartel is, namely, increasing production,” said Kpler analyst Victor Katona.
One of Riyadh’s arguments was the fear of the possibility of oil in Russia – the kingdom presumably that due to the restriction, it could be significantly reduced. Delayed production in Russia, adding to supply cuts and maintaining relatively high prices. The next OPEC observation meeting is on Sunday, December 4th. It is expected that the deputies of the cartel will ask Moscow why it is increasing production. True, as an international agency, Russia will soon face the introduction of oil doses, the effect of the application, the use of weight, evaluate the cartel.