Russia’s Oil Output Cuts: A Global Context for North American Markets
Russia is currently trimming its oil production by about 500,000 barrels per day relative to February, with follow-up actions to be assessed by independent observers. This update comes from Deputy Prime Minister Alexander Novak, as reported by TASS, and signals a coordinated approach to voluntary cuts at the national level.
Until now, Novak did not specify the exact period over which the February baseline would be measured for the domestic Russian market. He stressed the need for clarification on that point and reaffirmed Russia’s commitment to its voluntary reduction plan. Novak stated that Russia would adhere to these voluntary production cuts and would monitor progress through independent sources. In his words, Russia remains fully committed to implementing the agreed reduction levels in the oil sector.
As of May 1, nine members of the OPEC+ alliance, including Russia, began a voluntary output reduction expected to extend through the end of 2024. The collective aim is to reduce global oil production by about 1.66 million barrels per day. Alongside Russia, key players such as Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, Oman, and Gabon have expressed intentions to further limit their output. This moves aligns with broader efforts to balance supply and prices in the global energy market, a topic of interest to North American policymakers, traders, and consumers who closely watch how supply shifts impact gasoline costs and energy prices in the United States and Canada.