NUR-SULTAN – Kazakhstan has fulfilled its oil production quota under the OPEC+ (Organization for the Petroleum Exporting Countries) agreement producing 1.465 million barrels per day in June against the planned 1.469 million barrels, reports the Kazakh Energy Ministry.
“According to preliminary data, the volume of oil and condensate production in Kazakhstan in June amounted to seven million tons. Daily production in Kazakhstan, according to preliminary official data, amounted to 1.465 million barrels per day in June,” said the ministry.
OPEC+, consisting of OPEC members and other major oil producing nations, including Kazakhstan and Russia, agreed to a record oil production cut in history back in April 2020 after the pandemic hit demand. The record cut of 9.7 million barrels started May 1 and was later gradually relaxed. They currently stand at 5.8 million barrels per day.
In March 2021, Kazakhstan and Russia were allowed to increase oil production to 20,000 barrels per day and 130,000 barrels per day, respectively, from April.
The group was supposed to convene on July 5 to discuss further oil production adjustments, but the meeting was called off after the United Arab Emirates rejected a proposed oil production increase by nearly two million barrels per day between August and December, or 400,000 barrels per day monthly, as well as extending the deal to the end of 2022, instead of initially agreed in April 2022.
“While the UAE supported part of the proposal to raise production, it objected to an extension beyond April, when the current deal expires, and insisted on a higher baseline from which cuts are calculated to better reflect its increased capacity,” said the International Energy Agency in its latest report.
The date of the next meeting was not yet announced, leaving the group with no decision beyond the end of July. And if the deal is not reached, this may result in a “deepening supply deficit,” according to the IEA.
“Oil markets are likely to remain volatile until there is clarity on OPEC+ production policy. And volatility does not help ensure orderly and secure energy transitions – nor is it in the interest of either producers or consumers,” said the agency.