The Russian government ordered companies to cut oil production in the second quarter to 9 million barrels per day by the end of June. This is in accordance with Moscow's obligations to OPEC+.
Russia will reduce oil production
Reuters cites its sources and writes that the production cuts will contribute to the seasonal peak of maintenance at oil refineries. Many of these have already reduced fuel production due to disruptions and attacks by Ukrainian drones.
Russia plans to gradually ease the reduction in exports and focus only on reducing production.
Sources told the publication that the Russian government has set specific targets for each company to support international oil prices.
Russian Deputy Prime Minister Oleksandr Novak said Russia will cut oil production and exports by an additional 471,000 barrels per day in the second quarter.
At the end of last month, he stated that Russian oil production is 9.5 million barrels per day.
Reuters notes that Russian oil and gas condensate production has fallen from an annual peak of 11.7 million barrels per day in 2019 to about 10.8 million in recent months due to coordinated actions with OPEC.
Russia plans to cut production by an additional 350,000 barrels per day in April and exports by 121,000 barrels per day compared to March.
In May, production will decrease by 400,000 barrels per day and exports by another 71,000 barrels per day.
However, this does not include the production of gas condensate. Reuters noted that in 2023, the Russian Federation produced about 1.3 million barrels per day.
Drone attacks on refineries reduced oil production and processing in the Russian Federation
On March 25, Vasyl Maliuk, head of the Security Service of Ukraine (SSU), said on the ICTV channel that the service's special operations to damage oil refineries in Russia reduced oil production and processing by 12%.
Russia replenishes its budget through the export of oil products, which accounts for a third of its budget and the lion's share of its military budget.
Vasyl Maliuk
SSU chief
He did not deny that Ukraine has carried out 13 successful attacks on Russian refineries, noting that currently, one of the attacks by the SSU is "cutting off oxygen" to the Russian dictator Vladimir Putin, referring to the economic sector of the Russian Federation.
