Russia cuts oil output

 

Russia plans to cut its oil production by 5% or 500,000 barrels per day in March.  The move comes following additional Western sanctions on Russian crude and oil products that went into effect in December and February. The EU implemented its ban on seaborne imports of Russian crude on Dec. 5 and oil products this week. Following news of the production cut, the price of international benchmark Brent Crude rose 2.24% to $86.39 a barrel. U.S. West Texas Intermediate rose 2.13% to $79.72 a barrel. Russia’s Deputy Prime Minister Alexander Novak, who announced the production cut, said the reduction would help restore market relations. Novak said the cut does not apply to liquified natural gas and would be calculated from actual output levels and not from Russia’s quota under OPEC.