Russia To Keep Lowering Oil Production Through June

Russia Deputy Prime Minister, Aleksandr Novak announced on Tuesday that the country would keep its reduction in oil production by 500,000 barrels per day through the end of June.

With reference to his declaration from last month that Russia will begin reducing its output by 500,000 barrels per day, Novak stated, "At the moment, Russia is close to attaining the desired level of reduction - it will be reached in the coming days.

The decision to voluntarily reduce output by 500,000 bpd will be in effect until June 2023, inclusive, according to Novak.

Novak said that there was unprecedented pressure on the world oil market, citing Western energy embargoes against Russia and what he called risky measures to restrict the price of Russian oil.

In addition to a deal by OPEC+, a grouping of the Organization of the Petroleum Exporting Countries and allies led by Russia, to cut supplies, Russia has also unilaterally reduced its output.

Despite requests for higher output from significant consumers, the group decided on drastic output reductions of 2 million bpd from November until the end of 2023 in October.

A high-level ministerial panel from the group will discuss market conditions on April 3; a full ministerial meeting will take place on June 4.

Early this week, oil prices hit a 15-month low due to concerns that the banking crisis will hurt global economies and energy consumption.

However, oil prices have subsequently recovered.

On Tuesday, US crude was trading at around $69 per barrel, while Brent crude was at roughly $74.