Russia to voluntarily cut oil exports by 500,000 bpd in August

Russia will voluntarily cut oil exports by 500,000 barrels per day (bpd) in August. This was announced by Deputy Prime Minister of Russia Alexander Novak.

“As part of efforts to ensure market balance, Russia will voluntarily reduce supplies to the oil markets by 500,000 bpd in August by reducing exports by the designated amount,” Novak told reporters (quoted from TASS).

In February, the Russian authorities announced plans to voluntarily cut oil production by 500,000 barrels per day. Alexander Novak said that this year Russia will reduce oil and gas condensate production to 515 million tons, which is 20 million tons less than in 2022. Algeria, Iraq, Kazakhstan, Kuwait, the United Arab Emirates, Oman and Saudi Arabia also promised to cut production.

On June 4, Alexander Novak announced that Russia would extend a voluntary reduction in oil production by 500,000 barrels per day until the end of December 2024, it will be counted from the quota for the next year. Mr. Novak stressed that the decision was made in the course of a dialogue with all members of the OPEC + alliance, there were no disputes or serious disagreements between the Russian Federation and Saudi Arabia and other participants in the agreement.

In June, the International Energy Agency (IEA) reportedthat oil production in Russia in May 2023 decreased by 150 thousand b/d, to 9.45 million b/d, oil exports — by 260 thousand b/d. The IEA notes that in April this year, Russian production amounted to 9.6 million bpd, in May it fell to 9.45 million bpd.

More about this – in the material “Kommersant” “Quot a new turn”.

Olesya Pavlenko