Russia plans to further cut crude oil production in the warm season this year and next to compensate for exceeding OPEC+ quotas, according to people familiar with the matter.
Russia's additional production cuts are likely to be implemented in the summer and early autumn for technical reasons, said the people, who asked not to be named because the information is not public. These people also said that Russia needs more crude oil for domestic consumption in the cold months.
Russia is currently the largest crude oil producer in the OPEC+ alliance and has lagged behind in implementing the agreement aimed at supporting global oil prices. Russia pledged last month to compensate for overproduction since April, and the compensation period is expected to last until September 2025.
Russia has long said after cooperating with OPEC that the country cannot significantly reduce production in late autumn and winter due to oil field geological and climatic conditions.
Russia missed the deadline to submit a compensation plan to the OPEC secretariat by June 30, but plans to publish it as soon as possible, the people said.
The Ministry of Energy did not immediately respond to a request for comment.
