Russian oilmen complain about lack of capacity to fulfill OPEC agreement to increase production

Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the PRONEDRA Internet portal on the possible decision of OPEC + to reduce daily oil production.

Members of the OPEC+ alliance agreed to return production to the level that was before the pandemic. For this, it was decided to increase the volume by 400 thousand bpd monthly. Russian oilmen report that they are not up to the task as they run out of capacity.

It is possible that after the meeting of OPEC members, large Russian oil producers will not need additional capacities on December 2. According to Sergei Kondratiev the alliance can reduce the volume of daily production - instead of the approved 400 thousand barrels to make 300 thousand barrels daily. OPEC is expected to balance the current supply in such a way against the backdrop of the American president's decision to print out oil reserves. On November 23, Joe Biden made an official announcement about the sale of 50 million barrels of oil from reserves located on the coast of the Gulf of Mexico. He called for another five countries to do the same - China, India, Japan, South Korea and the United Kingdom.