Russia has decided to extend voluntary oil production cuts of 500,000 barrels per day (b/d) until the end of 2023, Russian Deputy Prime Minister Alexander Novak said on Sunday.
“As a responsible and preventive action, Russia is implementing a voluntary cut of 500,000 barrels per day until the end of 2023 from the average production level of February, determined in accordance with independent sources,” Novak said in a statement, published by the Russian government.
According to the Russian official, the global oil market is living through a period of high volatility and unpredictability due to the continuing banking crisis in the United States and Europe, the global economic uncertainty and unpredictable and short-sighted decisions in the energy policy.
“Predictability on the global oil market is a key element of energy security,” he said.
Russia initially announced production cuts only for March, but later extended the initiative until the end of June .
Novak’s announcement comes as several OPEC countries, such as Saudi Arabia and the UAE, decided to voluntarily trim oil production from May until the end of 2023.
According to official sources, Saudi Arabia would slash its oil production by 500,000 b/d while the UAE announced cuts of 144,000 b/d.
Other countries such as Kazakhstan (-78,000 b/d), Iraq (- 211,000 b/d), Kuwait (-128,000 b/d) and Oman (- 40,000 b/d) announced voluntary oil production cuts.
In total, additional oil production cuts announced by several OPEC+ (a group including OPEC member countries and allies) countries, excluding Russia, are estimated to total 1.5 million barrels per day.
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