Kazakhstan Exceeds OPEC+ Quota Again

Kazakhstan has once again breached its OPEC+ production quota, Orda.kz reports.

The latest overage was driven by a sharp increase in output at the Tengiz field, according to Reuters.

In June, Kazakhstan produced 1.88 million barrels of oil per day — a 7.5% jump from May and well above the 1.5 million barrels per day limit set by OPEC+. According to Chevron data, Tengiz alone accounted for a significant portion of the increase, with daily production rising from 813,200 to 953,000 barrels due to an ongoing capacity expansion project.

Overall, Kazakhstan’s combined output of oil and gas condensate reached 2.15 million barrels per day last month, up from 2.02 million in May.

Sources previously told Reuters that Kazakhstan’s repeated violations have triggered frustration within the OPEC+ alliance. One noted that the cartel’s recent ramp-up in production may be, in part, a strategy to "punish violators with lower world prices."

The next OPEC+ meeting is scheduled for July 6, where members will revisit the possibility of raising production by another 411,000 barrels per day starting in August. If approved, that would bring the total increase in OPEC+ output since January to 1.78 million barrels — about 1.5% of global demand, raising the risk of internal tensions and further price volatility.

Kazakhstan had already exceeded its quota in May, producing 1.86 million barrels.

Original Author: Ruslan Loginov