Russia will compensate for overproduction of oil in August and September

Interfax reported that Alexander Novak, Deputy Premier, said on Friday that Russia will compensate in August and September for oil production in excess of the OPEC+ quota. This is in accordance with the current plan.

Novak also said that the government is still debating a complete ban on gasoline exports and that any decision would depend on the market price in the coming days.

The Russians have to compensate for a cumulative overproduction of 691,000 barrels a day since April.

OPEC+ - the Organisation of Petroleum Exporting Countries (OPEC) and its allies, such as Russia - has increased production after years of cutting it to support the market.

Sources have said that Saudi Arabia and Kazakhstan also released more oil than their quotas. This angered other OPEC+ member countries, including Saudi Arabia.

Novak, when asked about the possibility of a full-scale gasoline export ban in the future, said that the government would examine the fuel market over the next few weeks to determine if such a move was justified.

At the moment, only a small percentage of gasoline exported by resellers is restricted, but oil companies have licenses to export fuel overseas. The restrictions will last until August 31.

Russia produces approximately 44 million metric tonnes of gasoline each year. Egypt and Turkey are two of the largest importers.

Sources claim that Russia's gasoline exports increased by nearly 1.5 times year-on-year in the first quarter of 2025, reaching around 2.4 millions tons. (Reporting from Vladimir Soldatkin. Anastasia Teterevleva wrote the article. Tomasz and Mark Potter (Editing)

(source: Reuters)