Russia cuts oil production due to the introduced price ceiling — EADaily, February 11, 2023 — Politics, Russia News

The White House claims that Moscow’s decision to cut oil production was made in response to attempts by Western countries to impose restrictions on the cost of hydrocarbons supplied to the Russian Federation, the United States will consult with OPEC on this issue. This position was stated on Friday by the coordinator for strategic communications at the White House National Security Council, John Kirby, at a briefing for journalists.

He made the assertion that the Russian side “wants to use energy as a weapon again.”

“This move, if confirmed to be true, will not come as a big surprise,” Kirby stated.

According to him, this decision is “a reaction to the establishment of a ceiling on the cost” of oil by Western countries.

The White House spokesman said that the American side “will continue to speak with allies and partners.” They will discuss “better balancing supply and demand.” Kirby added that contacts with OPEC countries would follow. He also noted that he is currently unable to report on any specific plans for negotiations.

Deputy Prime Minister of the Russian Federation Alexander Novak said on Friday that Russia would voluntarily cut oil production by 500,000 bpd in March. According to him, this decision was voluntary, no consultations were held with anyone.

Novak’s representative explained that the reduction in production will affect only oil, excluding gas condensate. At the same time, a TASS source in the industry specified that the decline in production will be calculated from the real level of production, and not from the Russian quota under the OPEC+ deal. According to the parameters of the deal, oil production for the Russian Federation is set from November 2022 at the level of 10.478 million barrels per day. In January 2023, Russia produced approximately 9.8-9.9 million barrels per day.

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