Russian Production Cut Round-Up

Russia round-up:

• Putin’s comments Wednesday that OPEC+ made voluntary cuts to maintain high prices contradicts the official line that it was to ‘balance markets’.
• "But all our actions, including those related to voluntary production cuts, are connected precisely with the need to maintain a certain price environment on world markets, in dialogue and contact with our partners in OPEC+," Putin said.
• Russian Deputy Prime Minister Alexandre Novak claimed Wednesday that Russia has reached its 500,000 bpd cut commitment May. "As for the current situation, Russia is cutting [output] by 500,000 barrels per day. We have reached [the announced reduction volume] in May," he said.
• Novak claims Russia’s voluntary commitment was without the consultation of OPEC+.
• A research note by Kpler out today forecasts May production at 10.709Mbd, down 350kbd from Feb '23 – still shy of intended levels.
• The IEA monthly report out this week claims that Russia needs to cut production by another 300kbd in May to reach the target. Russia’s crude production in April was about 9.6 million barrels per day, the IEA said. That’s only 200,000 barrels below the February baseline for the cuts, according to the agency.
• On an export basis, Bloomberg vessel tracking places seaborne Russian crude exports at a four-week average basis of 3.72mn bpd – a record pace. Russia’s overall lack of storage means its seaborne exports give a good indication of production levels which appear well short of hitting claimed levels.