Russia to cut oil exports by 300,000 bpd in September – Kommersant

Deputy Prime Minister Alexander Novak announced Russia’s extension of a voluntary cut in oil supplies by cutting exports by 300,000 barrels per day (bpd) in September. Saudi Arabia has decided to extend the voluntary cut in oil exports by 1 million bpd.

“As part of efforts to ensure market balance, Russia will continue to voluntarily reduce supplies to the oil markets in September, now by 300,000 bpd, by reducing exports by the designated amount,” Novak told reporters. TASS.

In August, Russia will voluntarily cut oil exports by 500,000 barrels per day, in addition to the previously announced cut of the same amount. As Alexander Novak noted, oil companies will decide for themselves whether to achieve a reduction through exports or production.

Shortly before the Russian Prime Minister’s statement, the Saudi agency The press, citing an official source in the Ministry of Energy of the country, reported that Saudi Arabia decided to extend the voluntary reduction of oil by 1 million barrels per day until September. Initially, the measure was introduced for July, then the kingdom shed it until August.

Accordingly, the volume of oil production in Saudi Arabia in September will remain at the level of 9 million b/d. At the same time, the reduction by 1 million b/d is carried out in parallel with the reduction in production by 500 thousand b/d in agreement with OPEC +. The total reduction is 1.5 million bpd.

On a voluntary reduction in total by 1.66 million bpd. several OPEC+ countries agreed in May. Initially, the measure was introduced until the end of 2023, but then it was extended to 2024. Russia extended the production cut by 500,000 barrels per day for the same period.

Lusine Balasyan