Russia to fulfill decision to cut oil output by 500,000 bpd soon, extending decision until June inclusive - Novak

MOSCOW. March 21 (Interfax) - Russia, which previously announced a reduction of 500,000 barrels per day in oil production in March, is approaching the target and is extending the decision to cut oil output until June inclusive because of the current situation on the global market, Deputy Prime Minister Alexander Novak told reporters.

"Russia is currently close to reaching the target level of reduction in the coming days. In accordance with the current market situation, the decision voluntarily to cut output by 500,000 bpd will be valid until June 2023 inclusive," Novak said.

The global oil market is currently under pressure from "unnatural factors", including the short-sighted energy agenda of Western countries against traditional energy sectors, their imposition of an embargo and "price cap" on oil and oil products, as well as restrictions on their transportation, the Deputy Prime Minister said.

"The risk of replicating these attempts leads to the destruction of the investment climate in cyclical industries and hits consumers. The designated set of politically motivated low-quality solutions creates significant risks for the energy security of the whole world," the Deputy Prime Minister added.

He noted OPEC+ is an important tool for balancing the market, whose decisions are based on "fundamental indicators, and not political messages."

As reported, Russia announced a voluntary reduction in oil production in March of 500,000 bpd; the reduction only affects oil. The decision was made without international consultations and will contribute to the restoration of market relations against the backdrop of the introduction of restrictions on Russian energy resources, Novak said.