Russia will cut crude oil production by half a million barrels per day next month, a little over two months after the world’s major developed economies imposed a price cap on the country’s seaborne exports.
“We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling,” Russian Deputy Prime Minister Alexander Novak said in a statement. “In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations.”
The cut is equivalent to about 5% of Russian oil output
Futures prices for Brent crude — the global benchmark — jumped 2.7% on the news Friday morning.
According to Reuters, Russia took the decision to reduce its output without consulting the OPEC+ group of producers, which includes Saudi Arabia. OPEC+ decided in October to cut output by 2 million barrels per day and has not adjusted that stance since.
