According to insiders, Russia's oil production in January fell to 8.962 million barrels per day, which is below the quota set by the OPEC+ agreement, with a shortfall of 16,000 barrels per day. While this data indicates that Russia complied with the OPEC+ production cut agreement, the country still faces the pressure of compensating for past overproduction.
Russia previously promised to submit a compensation reduction plan by December 2023, but this plan has yet to be announced. Insiders point out that Russia's reduction plan is constrained by harsh winter weather conditions and complex oil field geology, making it more difficult to reduce production.
Moreover, although Russia's current oil production meets the OPEC+ agreement requirements, it continues to face the challenge of compensating for its previous overproduction, which might impact the pace of production cuts in the coming months.
The Russian Ministry of Energy has not yet responded to this issue, and it remains unclear when the country will announce a detailed compensation reduction plan.
