Russia To Cut Oil Output By 471,000Bpd In Second Quarter

Russia will reduce oil production by about half a million barrels per day in the second quarter of 2024, the Kremlin announced Sunday, as part of a price-raising strategy.

The agreement, reached with Russia’s energy partners in the OPEC+ group, builds on past limits to oil output and exports as some of the world’s leading energy producers seek to raise market rates amid economic uncertainties.

Russia’s Deputy Prime Minister Alexander Novak stated on Sunday that Moscow will lower output by 350,000 barrels per day (bpd) in April, 400,000 bpd in May, and 471,000 bpd in June.

“In order to maintain market stability, these additional cuts will be gradually restored depending on market conditions,” Novak said in a statement issued by the Russian government following the conclusion of the second quarter.

Russia’s federal finances rely on lucrative oil and gas revenues.

The West attempted to target Moscow’s energy exports as part of sanctions implemented in response to the Kremlin’s offensive in Ukraine, prompting Russia to increase supplies to countries such as China and India.

For many decades, Europe was Russia’s primary energy client.

extend year, Russia agreed to limit output by 500,000 bpd as part of a deal that will extend until the end of 2024.

Russia also decided on Sunday to reduce export quantities by 121,000 bpd in April and 71,000 bpd in May, compared to its average sales in the same months last year.

“This additional voluntary reduction is aimed at strengthening the precautionary measures taken by OPEC+ countries to maintain stability and balance in the oil markets,” Novak said in a statement.

Leave a Reply