Russia will cut oil production to 500,000 barrels a day in March. The announcement was made this Friday (10) by Russian Deputy Prime Minister Alexander Novak. He believes that this decision will contribute to the reestablishment of market relations.
According to him, Russia fully sells the entire volume of oil produced in the country, however, Moscow will not sell oil to anyone who directly or indirectly adheres to the price cap imposed by Western countries. In this regard, Novak pointed out that Russia will voluntarily reduce production in March and will continue to be guided by the market situation.
The G7 countries, the European Union and Australia, reached an agreement to establish a ceiling of US$ 60 per barrel for Russian oil. The measure, adopted as a sanction for Ukraine’s war, took effect on December 5.
On February 1, Russia imposed a ban on oil supplies to countries that have set a price cap on their oil. The Kremlin classified these countries as “hostile” to Moscow.
In November, before the introduction of the cap and the EU embargo, Russia averaged around 11 million barrels of oil a day. In December, the production did not change, and in January it decreased by 0.4% in relation to last November.
At the same time, in December, Novak assumed that at the beginning of the year oil production could be reduced by about 500-700 thousand barrels per day, or 5-7%.
Editing: Arturo Hartmann
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