Russia will cut oil export schedule 2.1 mln tonnes in Q3 as part of voluntary reduction in exports

MOSCOW. July 17 (Interfax) - Russia is cutting its export schedule for August as part of a voluntary reduction in oil exports.

"In accordance with the decision to voluntarily reduce oil exports by the Russian Federation in August 2023 by 500,000 barrels per day, the schedule for transporting oil through trunk pipelines outside Russia via shipment routes for the third quarter of 2023 will be reduced by about 2.1 million tonnes, which corresponds to the indicated level of reduction in exports for August," the Energy Ministry said in a statement.

The decrease in the export schedule volume will affect both shipments to Russian seaports (Novorossiysk, Primorsk, Ust-Luga) and pipeline supplies, the ministry said.

As reported, Russia has decided to voluntarily reduce supplies to the oil markets by 500,000 bpd in August by reducing exports by the designated amount. Later, Deputy Prime Minister Alexander Novak explained that companies would decide on their own whether to reduce production to reduce supply to world markets.

Russia's measures to reduce exports followed the decision of Saudi Arabia to extend the voluntary cut in oil production to 1 million bpd through August. These restrictions will help balance the global market during a period of low demand, Novak said.