Russia’s decision to voluntarily cut crude oil production will be in force until the end of the year
The production will be reduced by 500,000 barrels per day from the average level of production in February
Russia’s decision to voluntarily cut crude oil production will be in force until the end of 2023, according to the statement of Deputy Prime Minister Alexander Novak published on the official website of RF Government.
According to Rosstat, Russia’s oil production in November 2022 (before export restriction) was 10.85 million barrels per day. No data on February have been published yet.
On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force. G7 nations, the EU and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. Moreover, starting February 5, 2023, similar restrictions on deliveries of petroleum products from Russia were enforced as the EU Council officially greenlighted the decision, in conjunction with the G7, to introduce a price ceiling on Russian petroleum products supplied by sea at $100 for premium oil and at $45 for discount.
In February 2023, OPEC+ reaffirmed their commitment to the plan to reduce oil production by two million barrels per day, agreed upon following the meeting on 5 October 2022. Besides, Deputy Prime Minister Alexander Novak said in February that Russia would voluntarily reduce its oil production by 500 thousand barrels per day. Later he said that this decision would remain in force until end of June 2023.
