Russia will deepen the reduction in oil supplies by 200 thousand barrels per day – Kommersant

Deputy Prime Minister Alexander Novak confirmed that Russia will deepen an additional voluntary reduction in the supply of oil and petroleum products to 500 thousand barrels per day within the framework of OPEC+. According to him, the volume of 500 thousand b/d will be achieved by reducing the existing agreement to reduce supplies by 300 thousand b/d by 200 thousand b/d.

According to statement Alexander Novak, the supply reduction will last until the end of the first quarter of 2024. “In the future, to maintain market stability, these additional reductions will be gradually returned to the market at a pace depending on market conditions,” the statement says. It also notes that the voluntary reduction is aimed at maintaining stability and balance in oil markets.

Today, November 30, the 36th ministerial meeting of OPEC+ member countries took place. Following the meeting, the participants agreed on a voluntary reduction in production in the first quarter of 2024 in the amount of more than 2 million bpd:

• Saudi Arabia will reduce oil production by 1 million bpd,
• Russia – by 500 thousand b/d;
• Congo – by 277 thousand b/d;
• Iraq – by 211 thousand b/d;
• UAE – by 163 thousand b/d;
• Kuwait – by 135 thousand b/d;
• Algeria – by 51 thousand b/d;
• Equatorial Guinea – by 51 thousand b/d;
• Oman – by 42 thousand b/d;
• Nigeria – by 1.5 thousand b/d;
• Angola – by 1.1 thousand b/d.

The agreement on a joint reduction of 1.4 million bpd began to operate between OPEC+ countries in the summer of 2023 as a temporary measure. Then Russia pledged to reduce exports by 500 thousand b/d in the summer, and from September until the end of the year to maintain an export reduction of 300 thousand b/d. According to the summer agreements, the voluntary production reduction was to be completed by the end of this year.

Read more about OPEC+’s efforts to maintain oil prices in the Kommersant article. “Is the oil market running out of candy?”.