(Moscow) Russia will strengthen its reduction in oil production to 500,000 barrels per day until the end of March 2024, Deputy Prime Minister responsible for Energy Alexandre Novak announced on Thursday, following a meeting OPEC+ countries.
“Russia will strengthen the voluntary oil supply reduction of 300,000 barrels per day by an additional 200,000 barrels per day to 500,000 barrels per day, and extend this voluntary supply reduction until the end of the first quarter 2024 in coordination with certain OPEC+ countries,” said Mr. Novak, quoted in a press release.
“This reduction will be calculated based on average export levels for May and June 2023 and will amount to 300,000 barrels per day of crude oil and 200,000 barrels per day of refined products,” the Russian official said.
According to him, these reductions are intended to “maintain the stability and balance of oil markets” and may be lifted in the future “at a pace depending on market conditions”.
The announcement of this decision comes just after that of the extension of the reduction in oil production by one million barrels per day by Saudi Arabia, Russia’s powerful partner within OPEC+, a collective bringing together major oil exporting countries.
Measures of this type make it possible above all to reduce the supply of oil on the markets in order to stimulate prices, a means for Moscow to try to increase its revenues from the sale of hydrocarbons, a major source of budgetary revenue in a context of conflict in Ukraine and Western sanctions targeting its economy.