Russia reiterates plan to curb oil exports through December

Russia will maintain its 300,000 barrel-a-day cut in crude exports this month and reaffirmed plans to keep them curbed through the end of the year.

The “voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets,” Deputy Prime Minister Alexander Novak said in a statement on Wednesday.

Russia and Saudi Arabia have for several months been making additional voluntary supply cuts over and above those required by the OPEC+ deal. Riyadh has curbed its production by an extra 1 million barrels a day since July, helping to drive a 20% increase in crude prices to above $90 a barrel in London. 

The two countries have pledged to review their oil policy each month, and Wednesday’s statement comes a just a few hours before a panel of ministers from the Organization of Petroleum Exporting Countries and its allies gathers to consider the market. Delegates from the group weren’t expecting any changes at the meeting. 

Russia will review its oil supplies again next month “to consider deepening the cut or increasing production,” depending on the market situation, according to Novak.