OREANDA-NEWS Russia plans to redistribute the remaining production cuts that it will need to implement as compensation for exceeding the OPEC+ target, stretching this process for another three months, Bloomberg reports, citing an updated compensation schedule.

According to the new plan, from July to November, Russia will have to compensate for 85 thousand b/d, in December - 9 thousand b/d.

According to the current plan, Russia must additionally reduce production by 490 thousand b/d by September of this year: in July - by 137 thousand b/d, in August - by 163 thousand b/d, in September - by 189 thousand b/d.

At the last meeting, the OPEC+ ministerial committee pointed out the need for "violators" to submit updated compensation schedules for under-reduced production volumes by August 18.

Excluding compensation, according to the updated OPEC+ quotas, Russia can produce 9.344 million b/d in August and 9.449 million b/d in September. Thus, according to the new compensation schedule, Russia could produce 9.259 million b/d in August and 9.364 million b/d in September, which is 74,000 b/d and 104,000 b/d higher, respectively, than production under the old compensation schedule.

In July, according to OPEC data, Russia produced 17,000 b/d above the plan, including compensation - 9.12 million b/d.

According to Bloomberg estimates based on monthly OPEC reports, Russia produced below the required level every month in the first half of the year, with the exception of March.