MOSCOW: Russia reduced its oil output by 300,000 barrels per day, as stipulated in the Vienna deal signed between OPEC and non-OPEC countries, Russia’s Energy Minister Alexander Novak said on May 18. “On average, Russia cut its oil production by 260,000 barrels per day in April, as in early April, it was reduced by 200,000 barrels per day and then by 300,000 barrels per day as of late April,” the Minister said. In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1. Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan agreed to reduce oil output by 558,000 barrels per day, including Russia by 300,000 barrels per day, starting from January 1, 2017 for six months, extendable for another six months.
Russia and Saudi Arabia made an announcement that they intend to extend oil production cuts through the first quarter of 2018. A decision will be made at a regular meeting in Vienna on May 25.
