Russia to Cut Oil Production Until Late June... "Unprecedented Pressure"

Alexander Novak, Russian Minister of Energy Photo by Reuters Yonhap News

Russia announced on the 21st (local time) that it will maintain the oil production cuts it began this month until the end of June.

According to major foreign media, Russian Deputy Prime Minister Aleksandr Novak stated in a press release that "the decision to reduce oil production by 500,000 barrels per day is valid until the end of June 2023," adding, "This is due to the current market situation." Novak also said, "Russia has almost reached the target for production cuts" and "the goal will be achieved within a few days."

He repeatedly emphasized that Russia is currently facing unprecedented pressure on the oil market due to Western countries' energy sanctions and the price cap on crude oil and petroleum products. Russia decided to reduce oil production by 500,000 barrels per day starting this month after Western countries implemented a price cap on Russian petroleum products.

Deputy Prime Minister Novak had announced this policy last month, stating, "We will not sell oil to anyone who directly or indirectly complies with the price cap," and argued that this measure would help normalize the global oil market.

The European Union (EU) and the Group of Seven (G7) have been enforcing a price cap on Russian crude oil at $60 per barrel since December 5 last year. Additionally, from February, a price cap was introduced on Russian refined petroleum products.

This content was produced with the assistance of AI translation services.