Russia’s production cut must be gradual

Russia’s production cut must be gradual

Russian Energy Minister Alexander Novak has said weather and geological conditions mean the country cannot reduce its oil output too quickly, as he reiterated Moscow’s commitment to the new OPEC+ deal.

Last week, Khalid al-Falih, the energy minister of Saudi Arabia and a key figure of OPEC, said Russia were moving “slower than I’d like” with the cuts.

The OPEC+ deal took effect from 1st January and will last 6 months, under which Russia has pledged to cut production by 228,000 bpd and has said will be achieved during the first quarter of 2019.

Novak said Russia will cut production by 50,000 bpd to 60,000 bpd in January but will not cut the entirety of its commitment outright – instead gradually reducing output as per a drafted timetable it has proposed.

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