Moscow mitigated restrictions on its energy industries, partially by granting favorable prices to China and India.
Russian Deputy Prime Minister Alexander Novak has issued a new warning on a possible cut in the country’s oil production, with his prepared remarks being emailed to media in Moscow.
Clean product tanker rates soared last week after the European Union and G-7 nations targeted Russia’s petroleum sales. Restrictions on Russian crude exports began in early December.
As Russia’s March 500,000 bpd output cut nears, data from Bloomberg shows that Russia seaborne crude exports have already fallen to a six-week low, but the markets remain relatively unperturbed.
Things are different now in the global energy markets to the way they were just after Russia invaded Ukraine on 24 February 2022. Back then, things from the oil markets’ perspective looked bleak, with Europe importing around 2.7 million bpd of crude oil from Russia and another 1.5 million bpd of oil products, mostly diesel.
Russia will cut oil production by 500,000 barrels per day, or around 5% of output, in March, Deputy Prime Minister Alexander Novak said on Friday, after the West imposed price caps on Russian oil and oil products.
The OPEC+ group currently doesn’t plan to change the course in its oil production targets after Russia announced a cut in its output for March, two delegates from the OPEC+ alliance told Reuters on Friday.
Oil prices jumped more than 2% on Friday, heading for weekly gains, as Russia announced plans to reduce oil production next month after the West imposed price caps on the country’s oil and oil products.
Russia logged a nearly 50% drop in oil and gas revenue in January, contributing to a wider budget deficit.
Russia’s budget was $24.7 billion (1.76 trillion rubles) into deficit in January