Russia increased its oil production in April thanks to a more generous OPEC+ quota. The nation pumped 42.81 million tons of crude and condensate last month, according to preliminary data from the Energy Ministry’s CDU-TEK unit. That equates to 10.46 million barrels a day, or 1.9% more than in March.

Gaining Momentum

Russia is increasing oil output amid a more generous OPEC+ quota

Source: Bloomberg calculations based on the Energy Ministry’s CDU-TEK monthly data

Russia typically implements almost 100% of its pledged cuts, Deputy Prime Minister Alexander Novak said last week in an interview with state-run Rossiya 24 TV. According to the International Energy Agency, the nation’s average compliance level was 95% from May 2020 to March 2021.

Between February and April, Russia and its neighbor Kazakhstan were the only nations allowed to increase production under the OPEC+ agreement. Other members kept their output flat, while Saudi Arabia voluntarily took an extra 1 million barrels a day off the market. In April, Russia’s daily quota rose by 130,000 barrels, following a 65,000-barrel-a-day increase each month in February and March.

Last week, the Organization of Petroleum Exporting Countries and its allies confirmed their plans to increase production by about 2 million barrels a day from May to July as global demand recovers. That will put the cartel back in line with the schedule established a year ago for phasing out its cuts, after postponing output hikes earlier this year.

Russia is set to increase production by 114,000 barrels a day from May to July, ramping up evenly over the period, Novak said last month.