Russia is set to push ahead with additional oil production limits in December as part of the latest OPEC+ framework. This was communicated by Deputy Prime Minister Alexander Novak. The news frames a coordinated effort to manage supply and stabilize markets during periods of fluctuating demand.
The central premise is that the alliance agreed to tighten production by 2.2 million barrels per day in the first quarter of 2023. The aim was to create a smoother transition through a season typically characterized by subdued demand, helping the market absorb excess supply without creating sharp price shocks.
Under the plan, Russia would cap its crude exports at 300,000 barrels per day and limit exports of refined petroleum products to 200,000 barrels per day. Russia intends to meet all of its OPEC+ commitments starting in January, reinforcing the bloc’s strategy to balance supply with global demand and to support price stability for member economies and oil-importing regions alike.
The agreements reached among OPEC+ members on November 30 outline a continued reduction in exports; Russia would reduce shipments to the world market by 300,000 barrels per day and separate reductions in oil products by 200,000 barrels per day. This coordinated approach aims to shore up values for producers while aligning with broader market projections and fiscal planning in member countries.
Saudi Arabia is slated to keep cutting its oil production by 1 million barrels per day, with other alliance members including Iraq, Oman, and Kazakhstan contributing to a combined reduction of around 700,000 barrels per day. The cumulative effect is designed to reassert price discipline across the group, aligning output with demand forecasts and signaling a shared commitment to stabilizing the global energy market.
Prior to the OPEC+ discussions, Brent crude briefly traded above the $84 per barrel mark as traders weighed the potential impact of the production cuts and the trajectory of demand. Market participants have watched the policy moves closely, interpreting the decisions as a signal of the group’s willingness to manage supply to defend price points that support investment and economic planning in consuming nations and energy-dependent industries in North America and beyond.