Russia cuts oil production by 5 percent, prices climb

Russia plans to cut its oil production by about 5 percent next month in response to sanctions it has received from Western countries over the war in Ukraine, which is sending prices higher. 

The state-run Russian media outlet TASS reported on Friday that the country will reduce its output by 500,000 barrels per day. 

“Today, we are selling the entire volume of our oil output. But, as we have said before, we are not going to sell oil to those who directly or indirectly adhere to the ‘price cap’ principles,” Deputy Prime Minister Alexander Novak said, referring to Russia’s ban on selling oil to countries that have placed a cap on oil sales from Russia. 

“In this regard, Russia will voluntarily cut production by 500,000 barrels per day in March. This will help restore market relations,” he continued. 

The Wall Street Journal reported that gas prices rose after Novak announced the change, and the international benchmark for oil prices, Brent crude, rose 2.5 percent to $86.65 per barrel. 

Oil production in Russia has so far remained near previous levels, but a crude oil analyst told the Journal that the drop could be a result of sanctions starting to have more of an effect on Russia. 

Russia has restricted the amount of oil and natural gas going to Europe since the war in Ukraine started almost a year ago, seemingly in an attempt to pressure Ukraine’s Western allies to reduce their support for the country. But that has not been effective at stopping the West’s continued backing of Ukraine.