Russia will voluntarily reduce oil production by 500,000 barrels per day in March in order to contribute to the restoration of market relations, Russian Deputy Prime Minister Alexander Novak said on Friday.
“Russia will voluntarily cut production by 500,000 barrels per day in March. This will contribute to the restoration of market relations. When making further decisions, we will make decisions based on the current market situation,” Novak told a briefing.
The Russian Deputy Prime Minister also said that Russia is now fully realizing the entire volume of oil produced. However, Novak again reminded that those who directly or indirectly adhere to the principles of the “price ceiling” will not be supplied with raw materials.
Oil prices soared on Novak`s statement
The price of April Brent crude futures on the London ICE Futures exchange rose by 2.78% and rose to $86.85 per barrel, according to the data of the site at 12.03 pm Moscow time. The last time the Brent brand traded at these levels was on January 31. The price of WTI crude oil futures for March delivery on the New York Mercantile Exchange is rising by 2.77%, to $80.22 per barrel.
Quotes turned to growth after the morning decline after Deputy Prime Minister Alexander Novak told reporters that Russia intends to reduce oil production by 500 thousand barrels per day in March. According to Novak, this “will contribute to the restoration of market relations.”