OPEC+ inches closer to quota compliance, Russia, Iraq still exceed targets

Shafaq News/ The OPEC+ alliance edged closer to adhering to production quotas in June, reducing crude output by 130,000 barrels per day (bpd) to 40.87 million bpd, according to a survey by S&P Global Commodity Insights.

Member countries with quotas produced 220,000 bpd above their quotas in June, down from a surplus of 239,000 bpd in May.

The alliance has implemented production cuts to support oil prices, which have begun to respond with Brent crude rising 14% since the start of June.

Two of the biggest overproducers in the group, Russia and Iraq, cut output in June but remained above target. Russia led the decline in non-OPEC production, cutting output to 9.1 million bpd, the lowest level since December 2020, but still above its quota of 8.98 million bpd.

The three producers have pledged to submit plans to compensate for exceeding their quotas at the start of 2024. Kazakhstan said it would submit its plan after output data for June is released. An Iraqi official said the delegation was in discussions with the OPEC secretariat over its compensation plan. Russia has not commented on its plan.

The next meeting of the joint ministerial monitoring committee overseeing the agreement is scheduled for August 1.