Russia endeavoring to honor OPEC+ commitments in full - Novak

MOSCOW. July 9 (Interfax) - Russia endeavors to honor its commitments under the OPEC+ agreement in full, Deputy Russian Prime Minister Alexander Novak said.

Novak did not say how the agreement had been fulfilled in May and June. "The assessment by independent agencies is still underway. It is too early to give figures. But in general, we endeavor to ensure that the obligations that we have undertaken are honored in full," Novak said, adding that any overproduction would be compensated "over a period of time."

Russia permitted "a limited excess of the agreed levels" in May under the OPEC+ deal, the Energy Ministry has said.

The matter of overproduction should be resolved in June by achieving the target levels," the ministry said.

"Production volumes that have been exceeded since April should be fully adjusted going forward. Excess output should be offset during the compensation period that continues until the end of September 2025. An updated schedule on offsetting production will be sent to the OPEC Secretariat in the near future," the ministry said.

Russia's official OPEC+ oil production quota for 2024 is 9.95 million barrels per day or 9.45 million bpd, given the voluntary production cut announced in April 2023 for the whole of 2024.

From the second quarter, Russia said it would reduce production and exports in variants of 471,000 bpd: in April, Russia was supposed to reduce production by 350,000 bpd and exports 121,000 bpd and in May by 400,000 bpd and 71,000 bpd, respectively while in June it will only reduce production, by 471,000 bpd.

That is, in April, Russian production should have been 9.1 million bpd, in May - 9.05 million bpd and in June - 8.979 million bpd, which corresponds to Saudi Arabia's quota.

OPEC has said, quoting secondary sources, that Russia produced 9.301 million bpd in April and 9.182 million bpd in May, so it overshot the April target by 200,000 bpd and the May target by 130,000 bpd.