Six OPEC + sources told Reuters Thursday that the alliance is likely to stick to the current agreement and accept a new June production target of 432,000 barrels per day when it meets on May 5.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, with Russia’s participation in the so-called (OPEC +), are working to undo the production cuts record applied since the outbreak of the Covid-19 pandemic in 2020.
But major US-led consumers are pushing the group to increase production at a faster pace, especially as Western sanctions have hurt Russian manufacturing.
The OPEC Plus meeting arrives in one moment in which the oil supply gap from “OPEC +” widened in March due to sanctions against Russia.
A report by the “OPEC +” group showed that the production of the oil producers alliance was 1.45 million barrels per day. in less than the production targets for the month of March, with Russian production starting to decline due to sanctions imposed by the West.
The report also showed that Russia’s production was around 300,000 barrels per day in less than its March quota, as it produced 10,018 million barrels per day, based on secondary sources.
Data showed compliance with production cuts rose to 157% in March, from 132% in February.
Earlier, the International Energy Agency said the full impact of sanctions and the disengagement of buyers from Russian oil will begin in May in then.
“We assume that the losses (in April) will increase in media to 1.5 million barrels per day per month, with Russian refinery output falling and buyers reluctant, ”the Paris-based agency said in its monthly oil report.
“From May in then, nearly three million barrels a day (of Russian oil supplies) could be cut when the full impact of the voluntary embargo in expansion on Moscow will enter in vigor, “he said.
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