Russia extends pledge to cut oil production through 2023

(Bloomberg) – Russia has decided to keep its oil production at a reduced level through 2023 amid high volatility in the global market, said Deputy Prime Minister Alexander Novak.

Russia had previously pledged to cut its crude-only output by 500,000 bpd in March in response to Western sanctions, including price caps on its oil and petroleum production, and to keep those curbs in place through June.

“Today the global oil market is going through a period of high volatility and unpredictability due to the ongoing banking crisis in the US and Europe, global economic uncertainty, and unpredictable and short-sighted energy policy decisions,” Novak said in a statement released on Sunday. “At the same time, stability and transparency in global oil market are key in ensuring energy security in the long run.”

The cuts of 500,000 bpd will be implemented from “the average production level as assessed by secondary sources” for February, according to Novak.

Russia’s decision follows the statement earlier on Sunday by some of its partners in OPEC+, including Saudi Arabia, to cut oil production from May.