Deputy PM Novak: Russia to reduce oil production, exports by 471,000 bpd in Q2 2024, pattern to be different every month

MOSCOW. March 4 (Interfax) - Russia will additionally voluntarily reduce oil production and its exports by 471,000 bpd in the second quarter of 2024, Russian Deputy Prime Minister Alexander Novak said, cited in a statement of the Russian government.

Russia will slash oil production by 350,000 bpd and exports by 121,000 bpd in April, he said. In May, the pattern will change as the oil output cuts will be expanded to 400,000 bpd, while the drop in supplies to international markets will amount to 71,000 bpd. In June, Russia will only cut production by 471,000 bpd.

The average volume of deliveries for May and June 2023 will continue to be the basis for cutting exports.

Novak emphasized that these additional cuts will subsequently be gradually regained depending on market conditions.

This voluntary production cut is in addition to the 500,000 bpd announced in April 2023, which is in effect until the end of this year.

Russia will continue to work with secondary sources in order to improve the accuracy and reliability of their estimates, Novak said.

Russia's official oil production quota for 2024 under OPEC+ is set at 9.95 million bpd. Taking into account the voluntary output cut announced in April 2023 for the whole of 2024 it is 9.5 million bpd. Russia's production thus should be at 9.1 million bpd in April, 9.05 million bpd in May, and 8.979 million bpd in June.