Novak announced the extension of oil production cuts in Russia until the end of the year

Russia is implementing a voluntary cut in oil production by 500,000 barrels per day until the end of 2023, Russian Deputy Prime Minister Alexander Novak said. Earlier, the authorities decided to extend the decline in oil production in the country until the end of June.

“As a responsible and preventive action, Russia is implementing a voluntary reduction of 500,000 barrels per day until the end of 2023 from the average February production level, determined in accordance with independent sources,” the statement reads. statement Novak, which is published on the website of the government.

According to the Deputy Prime Minister, the global oil market is now experiencing a period of high volatility and unpredictability. This is due to the ongoing banking crisis in the US and Europe, global economic uncertainty, and unpredictable and short-sighted energy policy decisions, Novak said. “At the same time, predictability in the global oil market is a key element in ensuring energy security,” he said.

Earlier in March, Russian authorities decided to extend voluntary 500,000 bbl/d cut in domestic oil production through June 2023 Novak said on March 21 that Russia was close to reaching its production cut target “in the coming days”. The Deputy Prime Minister also noted that today the global oil market is “under unprecedented negative pressure from unnatural man-made factors” that create volatility and uncertainty.

As Vedomosti wrote earlier, the Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for oil production in Russia in 2023 by 150,000 barrels per day to 10.28 million barrels per day. The production forecast for the first quarter has been increased even more significantly – by 620,000 barrels per day to 10.9 million barrels per day. But the cartel expects a sharp decline in oil production in Russia in the second quarter to 10 million barrels per day. In the III quarter, production, according to OPEC, will recover to 10.1 million barrels per day, in the fourth quarter – up to 10.15 million barrels per day.

According to the government, oil production in Russia in 2022 increased by 2% year-on-year to 535.2 million tons (10.7 million barrels per day), Novak reported in February. But, according to OPEC estimates, in 2022 oil production in Russia amounted to 11.03 million barrels per day. Thus, by the end of 2023, the organization expects this indicator to decrease by 7%. In the February forecast, OPEC estimated the decline in Russian production this year at 8%.