Stankevicius Group today shares insights into how Kazakhstan is unfairly criticized in the public sphere for allegedly failing to fulfill its obligations under the OPEC+ agreement and why there are no merits to support the claim.
First, Kazakhstan's share in the total production volume of the OPEC+ member countries is about 5% and less than 2% in all global production, and therefore even minor excesses on its part cannot affect the overall picture of prices on world markets.
Second, Kazakhstan, like all other countries, has the right to defend its national interests, as do other participants in the deal. Production cuts usually affect less influential countries, while the largest exporters find loopholes to circumvent quotas. For example, the UAE, Russia, and Iraq have repeatedly violated their quotas. However, no public claims have been made against them, although all of them have a significantly higher share in production. Kazakhstan uses possible levers to fulfill its obligations, but is increasingly raising the issue of the need to revise the current quotas within the alliance.
Third, 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.
