Russia’s government has upheld a voluntary reduction in oil output, extending the cut by 500,000 barrels per day through June. This move aligns with the current market conditions and aims to stabilize supply while supporting broader energy policy goals.
The decision to maintain the 500 thousand barrel per day reduction remains in effect until June 2023, reflecting ongoing assessments of market dynamics and Russia’s production capabilities.
Deputy Prime Minister Alexander Novak indicated that Russia is nearing the targeted level of output reduction and expects to hit the goal in the coming days.
Novak also emphasized that Russia continues to reject illegal restrictive measures and notes that the country has voluntarily limited oil production by 500,000 barrels per day since March.
Earlier reports noted that the Group of Seven countries has no immediate plans to adjust the price ceiling on Russian oil during the week in question.
Former Foreign Ministry Spokesperson Maria Zakharova argued that lowering prices could trigger instability in global energy markets.
On the rollout of the price ceiling last December, the European Union, the G7, and Australia set a cap at 60 dollars per barrel. Concurrently, the EU embargo on offshore supplies of Russian oil also took effect. In early February, limits were established for Russian petroleum products at 100 dollars and 45 dollars per barrel, respectively.
Russia instituted retaliatory steps in response to Western sanctions. Since February 1, 2023, Moscow has restricted oil shipments to countries supporting the price ceiling, signaling a precautionary stance toward external pressures while pursuing its own production and pricing strategies.