Although the OPEC + alliance is currently increasing its collective production of crude oil slightly above what they agreed to, not all members of the group can quickly increase their production, Russian President Vladimir said. Putin at an event on Thursday.
“Currently, OPEC + countries are increasing their production volumes, even a little more than they agreed to, but not everyone can do it,” Putin said during an economic discussion Thursday, relayed by the Russian press agency TASS.
“Not all oil-producing countries are able to rapidly increase their oil production. It is a long-term process, a long cycle, â€added the Russian president.
The OPEC + group, of which Russia is the main non-OPEC partner, decided earlier this month to increase the coalition’s overall oil production by 400,000 bpd, the minimum expected by the market.
However, for several months now, some OPEC + members, including OPEC Angola and Nigeria and non-OPEC Azerbaijan, have struggled to increase their oil production to the highest level. possible permitted by agreement. The difficulties are due to technical problems, a lack of investment and the decline in exploration efforts in recent years.
OPEC + saw its overall compliance with collective cuts in oil production to 115% in September, a delegate told Argus on Monday. September’s compliance rate was down from 116 percent compliance in August, but still higher than the market had hoped for as some alliance members failed to increase production in line with their quotas .
The high compliance rate despite the monthly easing of cuts of 400,000 bpd suggests that not all members of the pact are able to increase supply as quickly as their quotas under the deal provide.
Bloomberg estimates that if all members of the OPEC + alliance stuck to their respective production caps in September, the group’s overall production would have been 747,000 bpd higher than it was.
By Tsvetana Paraskova for OilUSD
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