Russia reduces oil production due to shortfall in sales
20.02.2023 - 10:00
Russia decided to cut oil production by 500,000 barrels per day.
The decision to reduce production indicates russia’s inability to sell the entire volume of oil obtained. This was stated by US Treasury Assistant Secretary Ben Harris, Reuters reports.
“They cut production because they just couldn’t sell it, not because they want to use oil and oil products as a weapon,” Harris said at the Argus oil conference.
According to him, the mechanism of limiting prices for russian oil was aimed at maintaining market stability and reducing russia’s income, so both goals were achieved.
The official also said that no American company was involved in Rosneft trading at a price higher than the maximum.
Due to the drop in prices, russia has announced that it will cut oil production by 500,000 barrels per day, or about 5%, starting in March.
According to the Ministry of Finance of the russian federation, in January, the terrorist country’s oil and gas revenues amounted to 426 billion rubles – 46% less than in January 2022.
