Russia's 2025 oil production projected slightly lower

Russia's oil production is expected to be slightly lower in 2025 compared to 2024. This decrease is part of an agreement with OPEC+ to address previous overproduction. Deputy Prime Minister Alexander Novak stated that Russia anticipates producing between 515 million and 520 million tons of oil this year. Last year, production was 516 million tons. Despite the drop in production, Russia plans to increase its oil processing levels this year. Novak, who represents Russia in OPEC+ discussions, mentioned that the global oil market is currently balanced with stable prices. He noted that global oil demand is likely to grow in the coming months, as fuel consumption typically increases during the summer driving season. OPEC+ plans to begin adding more supply to the market starting in April, in response to this anticipated demand. Novak also indicated that if the market shows signs of oversupply, OPEC+ could reconsider its production plans. The group is committed to monitoring the situation closely. OPEC expects significant growth in oil demand for both 2025 and 2026, forecasting an increase of 1.4 million barrels per day in each of those years.