Russia will deepen oil export restrictions in December by at least 50,000 barrels per day

Russia said on Sunday it will intensify oil export cuts by possibly 50,000 barrels per day or more in December, earlier than promised, as the world's biggest exporters try to support global oil prices. Saudi Arabia and Russia, the world's two biggest oil exporters, in December called on all OPEC+ members to join an agreement on production cuts, after a testy meeting of the producers' club.

Russian President Vladimir Putin visited Riyadh shortly after the OPEC+ meeting, which brings together the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies.

Russian Deputy Prime Minister Alexander Novak, Putin's top oil and gas supplier, was quoted by Russia's three main news agencies as saying Russia would deepen cuts beyond the 300,000 barrels per day already agreed for this year.

“We will add additional volumes as early as December,” Novak told the Interfax news agency. “By how much we will see based on December results – another 50,000 barrels per day could be added, maybe more.”

Russia had pledged to cut exports by 300,000 barrels per day from May to June exports – and to maintain that level until the end of the year.

In December, Russia agreed to deepen those cuts to 500,000 barrels per day in the first quarter of 2024, Russian agencies said.

Thanks to promises made to OPEC+, Russia's oil exports in 2023 will be less than the 247 million tons used in Russia's main macroeconomic forecasts, Novak said.

Novak said he hoped Gazprom and Chinese producer CNPC could soon agree on contract terms for gas sales through the Power of Siberia-2 pipeline.

Russia has been in discussions for years about building the Power of Siberia-2, which will transport approximately 50 billion cubic meters of gas annually from Yamal in northern Russia via Mongolia to China.

“We expect the company to reach an agreement as soon as possible,” Novak said.

First print: December 17, 2023 | 8:14 PM IST