Russia decided to extend the voluntary cut in oil production by 500 thousand barrels per day until the end of 2023 as a preventive measure against the backdrop of the situation on the global market. According to RBC, this was stated by Deputy Prime Minister Alexander Novak.
We are talking about a reduction from the average level of production in February, he explained.
“Today, the global oil market is experiencing a period of high volatility and unpredictability due to the ongoing banking crisis in the US and Europe, global economic uncertainty and unpredictable and short-sighted decisions in energy policy,” the government press service quoted him as saying.
Novak announced in February that Russia would voluntarily cut oil production by 5%, or 500,000 bpd, in March. This measure was later extended until July 2023.
The Deputy Prime Minister noted that the oil market continues to be under “unprecedented negative pressure from unnatural man-made factors” that create great volatility and uncertainty.
In December, a partial EU embargo on oil and oil products from Russia came into force. At the same time, the European Union, the G7 countries, Switzerland and Australia approved the price ceiling for Russian oil at $60. Moscow responded by refusing to supply oil to states and companies that comply with the limit imposed by the West.
On Sunday, Saudi Arabia and Kazakhstan announced that as a precautionary measure they will cut production from May to the end of 2023 by another 500,000 b/d and 78,000 b/d, respectively.
Source: Rosbalt
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