Novak: Russia Complying With Deal to Cut Oil Output

Russia is complying fully with its pledge to cut oil production gradually, Energy Minister Alexander Novak said on Monday.

He said Russian oil production decreased by 47,000 barrels per day in January from October, the baseline for the global deal aimed at reducing oil supply, Reuters reported.

“Russia is completely fulfilling its obligations in line with earlier announced plans to gradually cut production by May this year,” Novak said.

The pace of Russia’s output cuts has drawn criticism from Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries.

According to Energy Ministry data, Russia cut its output in January by around 35,000 bpd from October to 11.38 million bpd.

OPEC and other global oil producers agreed in December to cut their combined output by 1.2 million bpd in order to support oil prices and try to balance the market.

Of that, Russia pledged to cut its production by around 230,000 bpd in the first quarter.

source: Financial Tribune