HomeMediaLatest NewsOver-production of oil from a number of OPEC+ countries could be caused by the companies' out-of-sync

Over-production of oil from a number of OPEC+ countries could be caused by the companies' out-of-sync

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to the Prime news agency on the excess of production quotas by individual OPEC+ countries, including Russia.

The peculiarity of Russia, Kazakhstan and Iraq is the presence of many producing companies, so the overproduction of oil within the framework of OPEC+ obligations in these countries may be due to the desynchronization of their work, Alexey Belogoryev commented.

"Most likely, the reason is the desynchronization of the individual companies actions, including the commissioning of new production wells. All three countries that exceeded quotas differ from the main OPEC+ membership in the presence of many mining companies, including foreign ones in Iraq and Kazakhstan," the expert said, noting that compensation is possible with constant coordination efforts on the part of government agencies.

At the same time, Belogoryev is sure that overproduction will not affect the new decisions of OPEC+ at the meeting of heads of delegations on June 2. The alliance is expected to automatically extend the current restrictions for the second half of the year, the expert noted.
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