Russia’s pledge to cut its crude production is intended to support global oil market prices, according to President Vladimir Putin.
(Bloomberg) — Russia’s pledge to cut its crude production is intended to support global oil market prices, according to President Vladimir Putin.
“All our actions, including those related to voluntary production cuts, are connected with the need to support a certain price environment on global markets in contact with our partners in OPEC+,” Putin said at a meeting with his government via video-link on Wednesday. “In general, the situation is absolutely stable.”
Russia promised to reduce its crude production by 500,000 barrels a day in March from February levels and maintain the curbs for the rest of the year. Moscow initially said the move was retaliation for Western sanctions, including a price cap on its oil. The nation implemented only 200,000 barrels a day of these cuts in April, according to the International Energy Agency.
Last month, some other nations from the Organization of Petroleum Exporting Countries, including its de-facto leader Saudi Arabia, followed Russia by making their own voluntary output cuts. Total OPEC+ curbs are set to remove 1.66 million barrels a day from the market from May.
The main idea of the cuts was to restore stability in the global market because OPEC and its allies saw a supply overhang at their last meeting in April, Russia’s Deputy Prime Minister Alexander Novak said last month.
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