29 Mar 2024 14:34

Russia reducing oil production in Q2 to comply with other OPEC+ countries; if there is a market imbalance it can increase it - Novak

MOSCOW. March 29 (Interfax) - Russia, together with several OPEC+ countries, will reduce oil production rather than exports in the second quarter of this year due to the need to match the contribution by other countries to the overall cut-back, Deputy Russian Prime Minister Alexander Novak told reporters, when asked how he decision to extend the cuts correlated with remarks that the market is in balance.

"This is a measure related to ensuring an equal contribution by all countries to the reduction in production. As you recall, we did not cut it by the same amount as other countries reduced, but we had a 5% reduction in exports. The time has come when instead of exporting, we are reducing production," he said.

"But I want to say that we are constantly monitoring the situation, and this is our plan for the second quarter, we agreed with our colleagues that these voluntary cuts can be adjusted if necessary [...] for the need to increase supply. This is a constant process," Novak said.

He said the output cut among Russian companies would be distributed "proportionally" as usual.