Western countries, which are facing record inflation rates that threaten economic growth, have repeatedly asked the group to speed up its production increases, but the group’s members stress that the oil market is balanced and that the recent price increases are not related to fundamental factors.
Under a deal reached in July last year, the Organization of the Petroleum Exporting Countries and its allies led by Russia gradually scaled back record production cuts by increasing by regarding 400,000 barrels per day each month.
It is expected that production cuts will be halted completely by the end of next September, but the production of the oil bloc has been declining really sharply due to sanctions and the reluctance of buyers, which negatively affected Russian production, as well as Nigeria and Angola pumping oil volumes less than the target.
And internal data revealed that OPEC + produced 2.6 million barrels of oil per day less than the target last April.
Russian Deputy Prime Minister Alexander Novak said that “it is expected that oil and condensate production in Russia will decrease by more than 8% to 480-500 million tons this year.”
Oil prices have risen as much as 5% since the beginning of May, largely due to expectations of a European Union agreement to ban Russian oil imports. Brent crude was trading near $115 a barrel on Thursday.
European Council President Charles Michel said on Wednesday he was confident that an agreement might be reached before the next council meeting on May 30.
Russia has sharply increased oil sales to China and India, while increasing complications related to sales to European buyers.
