Russia’s September Oil Production Slightly Below OPEC+ Target

Russia’s crude oil production in September fell just below its target under the OPEC+ agreement, reaching 8.97 million barrels per day — a decrease of about 13,000 barrels per day from August — according to sources familiar with the Energy Ministry’s data.

This production adjustment comes amid increased efforts by OPEC+ members to comply with agreed production cuts. 

In a recent online meeting, Russia, along with Iraq and Kazakhstan, confirmed they had achieved full conformity and compensation according to the schedules submitted for September. Russia plans to make small compensation adjustments in October and November, with more significant reductions scheduled for next summer due to the challenges of implementing cuts during the winter months.

Russia has been implementing two sets of production cuts: a 500,000 barrel-per-day reduction announced early last year, and an additional 471,000 barrel-per-day cut promised in March, which will start to be phased out from December. The cuts are based on a baseline production level of 9.949 million barrels per day.

The opacity of Russia’s oil production data has increased due to Western sanctions and internal policy changes, complicating independent verification of its compliance with OPEC+ agreements. Earlier this year, Russia changed how it reports oil production data, now providing figures in barrels per day and using a ton-to-barrel conversion ratio that analysts believe is at the lower end of traditional factors, making assessments of its production levels more challenging.

For more detailed information, you can read the full article on Bloomberg.