MOSCOW: Russia will extend a 500,000 barrels per day (bpd) oil production cut until the end of the year, Deputy Prime Minister Alexander Novak said on Sunday.
Russia announced the move within minutes of statements by Saudi Arabia, Kuwait, Oman, Iraq and the United Arab Emirates that they were also reducing output until the end of the year. Russia is part of OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies.
“Acting as a responsible market participant and as a precautionary measure against further market volatility, the Russian Federation will implement a voluntary cut of 500 thousand barrels per day till the end of 2023, from the average production level as assessed by the secondary sources for the month of February,” Novak said in a statement.
The announcement means Russia has now twice extended the output cut that Novak first announced in February.
Novak said on Feb. 10 that Russia would reduce production by 500,000 bpd in March. On March 21, he said the cut would continue until the end of June.
On March 24, Novak said Russia was very close to reaching the targeted level of output, which he said would be 9.5 million bpd.