Russia has announced that it will reduce crude oil production by 500 million barrels per day starting next month. The decision comes just over two months after the world’s main economies imposed a price cap on the country’s maritime exports.
“We will not sell oil to those who directly or indirectly adhere to the price cap principles,” said Russian Deputy Prime Minister Alexander Novak, in a statement. “In relation to this, Russia will voluntarily reduce production by 500 million barrels per day in March. This will contribute to the re-establishment of market relations.”
The cut amounts to about 5% of Russia’s oil production. Brent oil futures prices — the global benchmark — rose nearly 3% on Friday morning news, the 10th.
According to the news agency Reuters, Russia took the decision to reduce its production without consulting the OPEC+ producer group, which includes Saudi Arabia. In October last year, the organization decided to cut production by 2 million barrels per day and has not adjusted this stance since then.