The Ministry of Energy expects Russia to reduce oil production by 2% in 2023 | December 29, 2023

MOSCOW, December 29. /TASS/. Oil production in Russia by the end of 2023 could be about 523 million tons or slightly less, which is about 2% lower than last year’s level, the head said Ministry of Energy Nikolay Shulginov.

“We can name the expected [прогноз]. 523 million tons, maybe a little less,” he told reporters.

It was previously predicted that the Russian Federation would produce 527 million tons of oil by the end of 2023, compared to 535 million tons in 2022.

At the same time, Deputy Prime Minister Alexander Novak stated that the Russian Federation has the potential for annual oil production much higher than expected, and the reduction is associated with agreements within OPEC+.

Several OPEC+ countries, including Russia and Saudi Arabia, are voluntarily reducing oil production by a total of 1.66 million barrels per day (b/d) from the spring of 2023 to the end of 2024. As part of these agreements, Russia is reducing production by 500 thousand bpd from the February average. At the same time, the Russian Federation is reducing supplies to world markets: in August by 500 thousand b/d, and from September until the end of the year – by 300 thousand b/d. At the end of November, some OPEC+ participants decided on additional voluntary cuts for the first quarter of 2024, the total volume of which will be 2.2 million bpd. Russia will reduce oil supplies by 500 thousand bpd in the first quarter of 2024.

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