Novak:Russia will continue oil supply cuts to the end of the year

By Rhod Mackenzie
Russia will maintain a voluntary reduction in the supply of oil and petroleum products to global markets by 300 thousand barrels per day until the year-end. Alexander Novak, the Russian Deputy Prime Minister, informed reporters on November 5th.

"A market analysis will be conducted next month to determine whether to deepen the reduction or increase oil production." "This is an additional measure to the previously announced voluntary reduction by Russia in April 2023, which will continue until the end of December 2024," stated the Deputy Prime Minister.

Novak further explained that the limitation aims to enhance the efforts made by OPEC+ nations to sustain stability and equilibrium in the oil markets."
On 21st September, the Russian government implemented temporary restrictions on exporting gasoline and diesel fuel to stabilize the domestic market. The Ministry of Energy explained that these measures would likely lead to greater availability of motor fuel on the local market, potentially causing a further drop in prices.

The following day saw reports that stock prices of diesel and gasoline had fallen in Russia. According to the St. Petersburg International Commodity Exchange, the price of AI-95 petrol decreased to 59.362 thousand pounds per tonne, AI-92 to 55.925 thousand pounds per tonne, and summer diesel to 61.431 thousand pounds per tonne.

On 11th October, Russian President Vladimir Putin urged the authorities to take proactive measures to address the ongoing fuel market crises. Recently, it has been observed that the price of petrol and diesel has significantly risen, prompting the Russian government to implement a series of measures to combat this issue.