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Two countries to control excess oil production in December

Iraq and Kazakhstan to offset excess production of 164,000 barrels per day

Dec 2, 2024 14:21 250

Two countries to control excess oil production in December  - 1

In December, Iraq and Kazakhstan must continue to offset excess oil production within of the OPEC+ agreements and cut production by a total of 164,000 barrels per day (b/d).

According to the latest data, Iraq has to offset production in December in the amount of 110,000 barrels per day, Kazakhstan - 54,000 barrels per day.

Russia, which also has obligations to offset excess oil production under the OPEC+ deal, will not cut output further in December, according to schedule. In October, Russia had to offset 10,000 barrels per day of production, and in November - 30,000 barrels per day. Thus, in December, Russia should return to the production level of 8.978 million barrels per day (according to the OPEC+ quota, taking into account all voluntary cuts).

At the same time, Iraq, Kazakhstan and Russia said they had submitted to the OPEC secretariat updated compensation schedules for overproduction of oil, but so far the new plans have not been published. According to the latest published schedule, Iraq has to offset overproduction of 1.44 million bpd by September, Kazakhstan - 699,000 bpd, Russia - 480,000 bpd.

Overall, OPEC+ production in December is scheduled to fall by just 2,000 barrels per day, from 35.45 million barrels per day in November to 35.448 million barrels per day. The slight decline was due to a change in the production compensation schedule for December.

From the first quarter of 2024. eight OPEC+ countries, including Russia and Saudi Arabia, voluntarily cut oil production by 2.2 million barrels per day. From October 2024 these countries planned to gradually begin to restore production, but the increase was postponed until the end of 2024.