Russia starts reducing oil extraction voluntarily

Moscow, Mar 1 (Prensa Latina) In a voluntary act, Russia will begin to reduce oil production by 500,000 barrels per day starting on March, Deputy Prime Minister Aleksandr Novak reported.

March 1, 2023
08:36

As Novak explained, the planned reduction will be counted from the actual production rate, and not from the quota allocated to Russia within the agreement of the Organization of Petroleum Exporting Countries (OPEC).

Novak pointed out that Russia’s reduction crude oil production was taken only in regards to March, and its extension to subsequent months will depend on the situation in the market.

Based on this commitment, Russia should have extracted some 10.5 million barrels per day by November 2022. However, in January 2023, Russia produced 9.8 to 9.9 million.

Ronald Smith, a BCS World of Investments senior analyst, predicted that Moscow’s decision could push up both international oil prices and the price of Urals brand crude.

This, in turn, should have a positive effect on the revenues of the Russian oil companies and on the federal budget.

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