Russia is struggling to boost its oil production, even as its allowance under the latest OPEC+ agreement is rising. At least that’s what the current data show. If it’s true, we ought to be worried.
The country is the largest of the allies that joined with the Organization of Petroleum Exporting Countries last year to agree to a record cut in oil production as Covid-19 slashed fuel demand. Now, as consumption recovers and the producer group is steadily restoring its curtailed supply, Russia is lagging behind.
Its production has flat-lined since April, while the amount it is allowed to pump under the deal has increased by 200,000 barrels a day. And that target is set to continue increasing at a rate of 105,000 barrels a day each month for the next year.
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