(CTN News) – On Sunday, Russia announced its intention to further reduce oil exports in December, potentially by 50,000 barrels per day or even more. This decision comes earlier than initially promised, as the world’s largest oil exporters strive to stabilize the global oil price.
Following a contentious meeting of the producers’ club, Saudi Arabia and Russia, the two leading oil exporters globally, called for all OPEC+ members to join an agreement on output cuts in December.
Shortly after the OPEC+ meeting, Russian President Vladimir Putin visited Riyadh, where discussions took place among the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other allies.
Alexander Novak, the Russian Deputy Prime Minister and Putin’s main representative in the Oil Export and gas sector, stated that Russia would deepen the cuts beyond the previously agreed 300,000 barrels per day for this year.
Novak was quoted by Russia’s three main news agencies, stating, “Already in December, we will increase the reduction in volumes.
The exact amount will depend on the results of December, but it could be an additional 50,000 barrels per day or possibly more.”
Russia had committed to reducing its exports by 300,000 bpd compared to the May-June levels and maintaining that level until the end of the year.
According to Russian agencies, in December, Russia agreed to further deepen these cuts to 500,000 bpd in the first quarter of 2024.
As a result of its commitments to OPEC+, Russia’s oil exports in 2023 will be lower than the 247 million tonnes projected in Russia’s main macroeconomic forecasts, stated Novak.
Novak expressed his hope for Gazprom and Chinese producer CNPC to promptly reach an agreement on the contract conditions for gas sales through the Power of Siberia-2 pipeline.
For years, Russia has been engaged in discussions regarding the construction of the Power of Siberia-2, which will transport approximately 50 billion cubic meters of gas annually from Yamal in northern Russia to China via Mongolia.
Novak emphasized the importance of the company reaching an agreement as soon as possible.