Russia may increase oil production cuts
Moscow, Russia – Russia may increase oil production cuts in December 2023 above the current 300,000 barrels per day (bpd) by 50,000 bpd or higher, Russian Deputy Prime Minister Alexander Novak said.
"In December we will add additional volumes. The figure will be more than 300,000. We will decide based on the results of December. Maybe the additional volume will reach 50,000 barrels. Maybe more," he said.
As for the reduction in oil production volumes, they remain the same: 500,000 bpd in both December and January. "In December, production will be in accordance with the [OPEC+] agreement - 500,000 bpd less in accordance with our established quotas," he noted.
The Russian Deputy Prime Minister also said that his country's production complies with the obligations undertaken within OPEC+.
According to Novak, in December the production level was 500,000 bpd lower "in accordance with plans", which also continues in January.
Meanwhile, the Russian Ministry of Energy currently does not see any prerequisites for lifting the ban on the export of winter diesel. According to Energy Minister Nikolay Shulginov, the ministry is also reviewing the possibility of excluding a number of companies from paying duties
on the export of oil products.
"Yes, we are exploring options for excluding from the ban manufacturers of specific products that cannot be used to circumvent the protective duty on the export of motor fuel," he said.
In November, the Ministry of Energy reported that Russia had increased shipments of winter diesel fuel to the domestic market, as well as its production. At the same time, the ministry ruled out the risk of a shortage this winter, since its reserves exceed last year's levels.
From September 21, the Russian government introduced a temporary restriction on the export of gasoline and diesel to stabilize the domestic market. The ban was introduced indefinitely, its duration depended on market saturation and the results of this measure. Then the restrictions were partially lifted, but they still continue to apply to winter diesel.