Stankevicius Group: OPEC+ Unfairly Targets Kazakhstan Over Oil Quotas

Kazakhstan is being unfairly singled out by OPEC for falling short of its oil production quotas, according to analysts at Stankevicius Group, Orda.kz reports.

In a recent commentary published by Reuters, Stankevicius Group pointed out that Kazakhstan accounts for just five percent of OPEC+ total production, and less than two percent of global oil output.

Despite this relatively small role, the country has faced disproportionately harsh criticism, while larger producers violate quotas with little consequence.

Stankevicius Group stressed that Kazakhstan is making every effort to meet its OPEC+ obligations but consistently calls for a review of the current restrictions.

Meanwhile, the actions of the larger players, they argue, are causing far greater market disruptions:

Saudi Arabia, by sharply increasing oil production on its part, is causing even greater damage to the OPEC+ deal, stimulating a decline in prices. In other words, Kazakhstan is maintaining a balance of its interests and the interests of other participants in the deal. While other participants, on their part, allow themselves to disrupt the market balance. 

Kazakhstan has faced repeated criticism over its production levels.

In April, government officials met with domestic oil producers to discuss compliance with OPEC+ targets.

Despite these efforts, Saudi Arabia — the bloc’s most prominent player — launched pricing maneuvers seen as a form of “punishment” for repeated overproduction.

Original Author: Nikita Drobny