Russia cuts oil output to required level by end of August

Russian news agency Interfax reported on Monday, citing Deputy Prime Minister Alexander Novak, that Russia has cut oil production to the required level by the end of August in accordance with the OPEC+ agreement.

A meeting of OPEC+ ministers left the current oil production policy unchanged. The Joint Ministerial Monitoring Committee of the Organization of the Petroleum Exporting Countries and its allies led by Russia, known as OPEC+, held a meeting via the Internet.

The current production plan, approved in June, calls for OPEC+ to gradually phase out cuts of 2.2 million barrels per day over the course of a year from October 2024 to September 2025.

The alliance agreed to extend previous cuts of 3.66 million barrels per day until the end of 2025.

The OPEC+ statement explained that the meeting also noted the confirmation of Iraq, Kazakhstan and Russia to achieve full compliance with the agreed production cuts. The three countries had previously presented plans to compensate for the surplus in production.

The Joint Ministerial Monitoring Committee, which includes oil ministers from Saudi Arabia, Russia and other major producers, typically meets every two months and can make recommendations to the wider OPEC+ group. The committee is scheduled to meet next on Oct. 2.