By Oyintari Ben
Russia will reduce its crude oil production by 500,000 barrels per day starting next month, a little more than two months after the major industrialized nations of the globe set a price restriction on the nation’s seaborne exports.
Alexander Novak, the Deputy Prime Minister of Russia, declared in a statement that “we will not supply oil to those who directly or indirectly adhere to the principles of the price ceiling.”
In this regard, Russia will voluntarily cut production in March by 500,000 barrels per day. This will aid the restoration of market relations.
The reduction is almost 5% of Russian oil output.
The benchmark global crude oil, Brent, saw a 2.7% increase in futures prices Friday morning.
According to Reuters, Russia reduced its output without contacting the OPEC+ group of producers, including Saudi Arabia.
OPEC+ resolved to reduce production by 2 million barrels per day in October, and they haven’t changed their mind.
