Russia to cut oil export by 500000 bpd

 

MOSCOW – Russia has given the hint that it intends lowering oil production  and export so as to ensure that the oil market remains balanced for the month of August.

Deputy Prime Minister of the Russian Federation, Alexander Novak made the revelation in a statement he released through the Russian news service. He said Russia is making the offer voluntarily.

“As part of the effort to ensure the oil market remains balanced, in August, Russia will voluntarily reduce its oil supply by 500,000 barrels per day, by cutting its exports to global markets by that amount”, he said.

According to the International Energy Agency (IEA), Russia exported an average of 8.3 million barrels of oil a day in April, an increase of 50,000 daily barrels compared to March in 2022.

The IEA added that Oil exports from Russia dropped to a low of 7.4 million barrels per day post-invasion, with sanctions taking a toll on its trade.

The rise corresponds to Russia’s increased effort to seek markets in countries that are yet to impose sanctions over the Ukraine war, according to the IEA monthly report.