IEA: Russia’s OPEC+ deal compliance rises to 377% in May

MOSCOW, Jun 15 (PRIME) -- Russia’s compliance with the OPEC+ oil output reduction deal grew to 377% in May from 337% in April, the International Energy Agency (IEA) said in a report on Wednesday.

The OPEC+ joint compliance amounted to 261% in the month. OPEC+ production remained almost flat on the month at 43.26 million barrels per day (bpd).

Russia’s oil output rose by 130,000 bpd on the month to 10.55 million bpd in May in spite of the Western sanctions, but still remains 850,000 bpd below the level it was before the start of the military operation in Ukraine, the IEA said, adding the increase of production was remarkable.

The agency upgraded its forecast for Russia’s average oil and gas condensate production in 2022 to a 500,000 bpd fall on the year to 10.37 million bpd. As of the beginning of 2023, oil production capacities of around 3 million bpd should be shut down in Russia, reducing combined supply to 8.7 million bpd, the agency said.

The IEA expects the countries outside OPEC+ to raise their combined oil output by 1.9 million bpd in 2022 and by 1.8 million bpd in 2023.

The IEA also slightly improved its forecast for the global demand in 2022 by 72,000 bpd to 99.4 million bpd, and in 2023 it should exceed the pre-pandemic level and reach 101.6 million bpd.

Commercial oil reserves of the Organization for Economic Cooperation and Development (OECD) countries grew by 42.5 million barrels on the month in April to 2.669 billion barrels as of the end of the month, 290.3 million barrels below the five-year average figure.

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