Russia extends decision to cut oil production by 500,000 barrels per day until June

Deputy Prime Minister Alexander Novak said that Russia has extended until June 2023 the decision taken in February to reduce oil production by 500,000 barrels per day. The corresponding written statement of the Deputy Prime Minister is published on site government.

Mr. Novak added that Russia will reach the target level of oil production cuts in the coming days.

The Deputy Prime Minister believes that the global oil market is under unprecedented pressure from “unnatural man-made factors.” Attempts to introduce a price ceiling mechanism are destroying the investment climate in cyclical industries and hurting consumers, Mr Novak said.

February 10 Alexander Novak announced Russia’s intention to voluntarily cut oil production by 500,000 barrels per day from March. Head of the Ministry of Energy of the Russian Federation Nikolai Shulginov thinksthat a decline in production may affect the market price of oil in the second half of 2023 and will reduce the discount on Russian grades of oil.

As Kommersant noted, in the Tyumen region, KhMAO and YNAO, the main oil and gas producing regions of the country, a drop in electricity consumption has been observed since March. The decline in demand is likely the first sign of a 500,000 bpd decline in oil production.

More details – in the material “Barrels missed megawatts”.

Erdni Kagaltynov