Russia to cut oil production in 2024

This follows from the decisions taken at the meeting of representatives of OPEC+ countries in Vienna on June 4, the Russian service of Radio Liberty reports.

Russian Deputy Prime Minister Alexander Novak says Russia is not abandoning its voluntary commitment to produce 500,000 barrels of oil per day less than the quota. This year, Russia's quota is 10478 thousand barrels per day, but in 2024 it will be reduced to 9828 thousand (and, taking into account the voluntary reduction, to 9328 thousand).

At the same time, the quota of Saudi Arabia, the largest OPEC country, for 2024 remained unchanged at 10478 thousand barrels.

In total, the OPEC+ countries agreed to reduce oil production by about 1.5 million barrels per day next year, excluding voluntary commitments to reduce oil production by individual countries. The purpose of the cuts is to stop the decline in oil prices on the world market. Saudi Arabia will reduce its production by 1 million barrels per day for a month to achieve price growth.

After the OPEC+ meeting, Novak said that Russia and Saudi Arabia have no disagreements.

Russian oil: production cuts and sanctions

OPEC+ is an informal organization that brings together countries that are members of the International Organization of the Petroleum Exporting Countries (OPEC), where Saudi Arabia plays a leading role, and a number of OPEC member states, including Russia.

On December 5, 2022, the decision to embargo Russian oil supplies to the European Union officially came into force. Now Russian oil can only be purchased at a price not exceeding $USD 60 per barrel.

In March 2023, Russia pledged to reduce oil production by 500,000 barrels per day.

In April, all OPEC+ member countries announced a reduction in oil production by about 1.15 million barrels per day.

However, in May, Russian crude oil flows to international markets still showed no signs of the production cuts announced by Russia. 

Subsequently, the Wall Street Journal, citing its sources, reported that Saudi Arabia is dissatisfied with Russia's actions in the field of oil production, believing that Moscow does not adhere to its commitments under OPEC+ to reduce oil production. Riyadh believes that Russia continues to supply more crude oil to the world market than agreed upon, and this leads to stagnation of oil prices, while Saudi Arabia would like to see them rise.