Russia to Implement Summer Oil Production Cuts

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Russia to Implement Summer Oil Production Cuts
OilOil ProductionOPEC Deal
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Russia will implement additional crude oil production cuts during the warmer seasons to compensate for exceeding its OPEC quota in months past

, according to sources familiar with the matter who spoke to Bloomberg. These cuts are planned for summer and early fall due to technological considerations, as Russia requires more oil for domestic use during the colder months. As the largest crude producer within the OPEC alliance, Russia has struggled to adhere to the group's production agreements to stabilize global oil prices .

Despite missing the June 30 deadline to submit a compensation schedule to OPEC's secretariat, Russia plans to release the schedule soon. The Russian Energy Ministry has not provided comments on the matter. In collaboration with other OPEC members, including Saudi Arabia, Russia has been undertaking voluntary production cuts. According to Bloomberg's calculations based on OPEC's monthly reports, Russia overproduced its quota by approximately 14.7 million barrels in the second quarter.

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