Early next year, Moscow may cut daily oil production by 700,000 barrels. This move will be in response to the price ceiling set by the G7.
Russia may cut oil production by 500-700 thousand barrels per day in early 2023 in response to export restrictions imposed by big seven. This was stated by the Deputy Prime Minister of the Russian Federation Alexander Novak, Bloomberg reported on December 23.
“We are ready to slightly reduce production at the beginning of next year by about 5-6% of what Russia is currently doing. We will try to find common ground with our colleagues to avoid such risks. But now we are more likely to risk a reduction in production rather than sticking to a sales policy in accordance with the threshold,” he stressed in an interview with the Russia-24 TV channel.
Moscow’s chief spokesman reiterated at the OPEC+ talks that the Russian Federation will not sell its oil to consumers and countries that use Western price ceilings. According to him, Russian producers can redirect their exports to competing markets, including Asia.
Russia’s annual oil production is likely to rise to 535 million tons this year, he said. This equates to approximately 10.74 million barrels per day at a ratio of 7.33 barrels per ton.
The agency noted that Novak described the potential drop in production as “minor”, but a reduction of this magnitude could tighten the global oil market.
As reported Correspondent.net, On December 5, the G7 countries and the European Union set a price ceiling for oil from Russia at $60 per barrel.
Over the past two weeks, oil prices have jumped and continued to rise on Friday.
Russian President Vladimir Putin said yesterday that he would sign a decree next week on “preventive measures” to set price limits.
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Source: korrespondent
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