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Russia Fulfilled The Opec+ Deal By 99% In June

Russia Fulfilled The Opec+ Deal By 99% In June

Russia fulfilled the OPEC + deal by 99% in June, Russian energy Minister Alexander Novak said during a press conference following a meeting of the OPEC+ Ministerial Monitoring Committee (JMMC) on Wednesday.

According to him, Russia has no inconsistencies with OPEC regarding the levels of execution of the deal. Novak also said that Russian companies were preparing to increase oil production in August in accordance with the previously agreed schedule and he does not see any problems with increasing production.

In accordance with the current terms of the OPEC+ deal, in August Russia can increase oil production by 500 thousand barrels per day - up to 9 million b/d.

Novak also assured that a partial recovery in oil production in August will not lead to an increase in exports due to seasonal demand within OPEC+, including in Russia. He noted that the demand for oil products in Russia is partially recovering.

Statements by representatives of other countries on the OPEC+ deal

Nigeria promises to bring the implementation of the OPEC+ deal to 100% by the end of July and compensate for previously uncompensated volumes, the country's oil Minister Timipre Silva said.

On the eve of July 14, the state Agency of Saudi Arabia SPA reported that the Kingdom's Energy Minister, Prince Abdulaziz bin Salman, held a conversation with his counterpart from Nigeria on the implementation of the OPEC+ deal.

According to SPA, Nigeria has not yet fully implemented the agreement and will compensate during July-September for volumes that were not reduced during May and June.

Under the terms of the deal, Nigeria was supposed to reduce oil production from 1.829 million b/d to 417 thousand b/d, but in may it fulfilled the agreement by only 57%, in June - by 78%.

Mexico and Iraq

Mexico has pledged to reduce oil production within OPEC+ only in May and June, but production in the country will decline, Saudi energy Minister Prince Abdulaziz bin Salman said at a press conference.

As for Iraq, it agreed to compensate for the volume of oil production that it did not reduce completely as part of its obligations under the OPEC+ deal in May and June. This is written by Bloomberg with reference to the delegates.

In July, Iraq will reduce production by another 70 thousand b/d in addition to its quota for reduction, and in August and September-by another 314 thousand b/d.

According to Interfax calculations, Iraq's "shortfall" in May and June was almost 700 thousand b/s. The quota of this country in May-July is 1.06 million b/d from the level of October 2018, in may it reduced production by only 488 thousand b/d, in June-by 937 thousand b/d.

Thus, in July, Iraq will have to reduce production by 1.13 million b / d from the level of October 2018, that is, by about 200 thousand b/d by June. From August, Iraq's quota should reach 849 thousand b/d, so the country will have to reduce production by 1.16 million b / d to the level of October 2018, that is, production should remain at about the same level as in July.

Kazakhstan

Kazakhstan has declared its readiness to fulfill its obligations to reduce oil production under the OPEC+agreement. This was reported by the Ministry of Energy of the Republic.

"Kazakhstan, in turn, is ready to fulfill its obligations. Earlier, representatives of the Republic informed the OPEC + Secretariat that in the first 12 days of May, there was an overproduction of oil production in the country due to the inertia of the industry," the report said on Wednesday.

"Under the terms of the OPEC+ agreement, it is planned to reduce the collective reduction in oil production from 9.7 million barrels per day to 7.7 million barrels per day from August until the end of this year," the Ministry said.