Russia could cut oil production in response to price cap

(Reuters) – Russia could cut oil production by 5% to 7% in early 2023 in response to price caps for its crude and petroleum products by ceasing sales to countries that have provided support , Deputy Prime Minister Alexander Novak said on Friday.

Alexander Novak indicated during an interview on state television that oil production could be reduced by 500,000 to 700,000 barrels per day.

The G7 countries, the European Union and Australia have agreed to cap the price of Russian maritime oil at $60 a barrel, the idea being to dry up Russia’s revenues to prevent it from financing the war in Ukraine with its crude sales.

Russian President Vladimir Putin announced this week that he would issue a decree early next week outlining Moscow’s response to the decision.

(Report Olzhas Auyezov; French version Camille Raynaud)