Russia will reduce oil production by 471 thousand barrels per day at the end of the second quarter – a decision made “in consultation” with other OPEC countries taking into account the market situation.
Russia will implement voluntary “additional” production cuts of 350,000 barrels per day in April, 400,000 in May and 471,000 in June, Russian Deputy Prime Minister in charge of energy Alexander Novak said, quoted in the press release.
As for exports, the reduction will be 121 thousand barrels per day in April and 71 thousand in May, according to the Russian leader.
The Russian Deputy Prime Minister explained that this new voluntary production cut “complements” the 500,000 barrels per day already announced by Russia in April 2023 and in effect until the end of 2024.
The cut “reinforces OPEC countries’ proactive efforts to maintain stability and balance in oil markets,” Novak explained in a Russian government press release.
Russia, a major member of the Organization of the Petroleum Exporting Countries (OPEC), has been pursuing policies in recent months aimed at stemming the fall in oil prices.
Although financial revenues from the sale of hydrocarbons make up a smaller portion of the federal budget than before the conflict in Ukraine, they remain important to Moscow at a time when its economy is focused on military efforts to support the military invasion.
Over the past two years, Kyiv’s Western allies have imposed tough sanctions on the Russian energy sector, forcing Moscow to massively redirect its exports to Asia and, in particular, to the continent’s two main countries – China and India.
Author: Lusa
Source: CM Jornal
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