Oil prices rise in global market after Russia announces production cuts

Russia’s Deputy Prime Minister Alexander Novak said that Russia will reduce oil production from next March.

He said that Russia has announced to cut fuel oil production by 500,000 barrels per day. will reduce their total production by 5 percent.

According to a report by news channels, Russia took this step after the western world fixed the price of Russian fuel and oil products.

After the announcement by Russia, the world’s second largest exporter, the price of crude Brent oil rose by two and a half percent to $86.6 per barrel.

The Deputy Prime Minister of Russia said in a statement, “So far we are selling all of our produced oil.”

But as we said earlier, we will not sell oil to those who directly or indirectly follow the principle of price fixing. In this case, Russia will reduce the production of 500,000 barrels of oil per day from March by its own decision.

The Kremlin said on Friday that Russia had discussed cutting oil production with some members of the OPEC Plus group.

Western countries set prices to reduce Russia’s income from oil exports. Russia is trying to figure out how to bypass these restrictions and continue exporting oil. But the announcement of oil production cuts suggests that Russia’s oil price cap is working to some extent.

Russian oil prices were frozen as part of sanctions imposed by Western countries after Russia attacked Ukraine. This price has been fixed at 60 dollars per barrel.