OPEC+ exceeded quota in April
While OPEC+ members exceeded the oil production quota by 568 thousand barrels last month, Iraq and Russia drew attention as the countries that exceeded the quota the most.
According to the report of the Vienna-based organization, which published monthly figures for the entire OPEC + alliance for the first time, the total daily oil production of eight countries was approximately 31.1 million barrels in April.
While the figure was 568 thousand barrels above the agreed limit, Iraq and Russia were the countries that exceeded their targets the most.
OPEC’s key countries and partners initiated new production restrictions at the beginning of the year in order to eliminate the global supply glut and support prices. These restrictions are expected to continue at the meeting to be held early next month.
Despite the high level of oil supply in the United States and the shaky outlook of the world economy, these measures were significantly successful and managed to raise the barrel price of Brent oil above 80 dollars.
However, the cuts have not been fully implemented. Some OPEC+ members, such as Saudi Arabia, Kuwait and Algeria, quickly implemented their share. On the other hand, countries such as Iraq, Russia and Kazakhstan do not take such rapid action regarding the blackout.
Baghdad has frequently opposed OPEC+ quotas as it seeks revenue to rebuild its war-torn economy, while Russia also needs funds for President Vladimir Putin’s invasion of Ukraine. Moscow promised to increase its contribution this quarter, reduced its exports and focused on production cuts. According to OPEC data, Russia’s production decreased by 154 thousand barrels per day in April to 9.29 million barrels, while this figure is approximately 193 thousand barrels above the country’s target.