Russia Announces New Cuts in Oil Production and Exports

OPEC+ intends to keep prices as stable as possible

Aleksandr Novak

As part of the coordinated production policy of the Organization of the Petroleum Exporting Countries (OPEC+), Russia will continue to reduce both crude oil production and exports. According to Russian Deputy Prime Minister in charge of energy Alexander Novak, reduction will amount to 471,000 barrels in the period April-June 2024. Novak emphasized that Moscow’s decision was coordinated with some other OPEC+ countries, but he did not specify which oil countries he was referring to. Within OPEC+, Russia is the closest ally of Saudi Arabia, the cartel’s informal leader.

“Russia will implement further voluntary reductions in oil production and exports totaling 471,000 barrels per day in the second quarter of 2024 in coordination with some OPEC+ member countries,” Novak said, emphasizing that “the reduction is aimed at strengthening the preventive measures taken by OPEC+ countries to maintain price stability and balance oil markets.”

As for specific figures, Moscow expects that in April 2024, the reduction in production will amount to 350 thousand barrels per day, and the volume of Russian oil exports will decrease compared to the average of the previous months of 121 thousand barrels per day. After May, oil production will decline by 400,000 bpd and exports by 71,000 bpd. Finally, in June, the production cut will be 471 thousand bpd, with exports unaffected. “In the future,” the Russian deputy prime minister said, “to maintain price stability, cuts will be gradually restored depending on market conditions.”