Russia announced plans to cut crude oil production by half a million barrels per day next month, nearly two months after the world’s major developed economies slapped a price cap on the country’s oil and gas exports.
The price of Brent crude rose to $86.6 per barrel on the news of the output cut from Russia, the world’s second-largest oil exporter after Saudi Arabia.
“We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling,” Russian Deputy Prime Minister Alexander Novak said in a statement. “In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations.”
The cut is equivalent to about 5% of Russian oil output.
According to Reuters, Russia took the decision to reduce its output without consulting the OPEC+ group of producers, which includes Saudi Arabia.
