Russia may cut oil production in response to G-7 price cap, says Putin
The decision on Moscow’s response will be announced in a presidential decree in the next few days, Putin said on state television, without giving further details.
“I’m not saying it’s a decision now, but if necessary, we will think about possible production restrictionsPutin said. “I have already said that we will simply not sell oil to those countries that participate in the price cap.”
The embargo on Russian oil came into effect on Monday, December 5. The European Union has banned almost all offshore imports of domestic crude oil, and the G-7 has agreed that anyone wanting access to key services provided by the bloc – especially insurance – will have to pay less than $60. per barrel.
Russia had previously announced that the impact of the price cap on oil production would be limited. Any volatility in domestic production “will not be greater than the fluctuations in the spring,” First Deputy Energy Minister Pavel Sorokin said earlier this week.
In April, two months after the invasion of Ukraine, Russia averaged around 10.05 million barrels a day, down from 11.08 million barrels a day in February, according to industry data unearthed by Bloomberg. Production then began to pick up, reaching an eight-month high in November.
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