Russian crude oil cuts underpin oil prices
Oil prices rebounded on Friday to the highest level in 10 days on reports that Russia is going to voluntarily cut crude oil output. The news increased anxiety about potential market deficit especially if global demand recovery will accelerate in 2023.
Brent benchmark traded near $87/bbl, WTI oil price gained 2%, advancing to $80/bbl.
The source of bullish momentum was the statement of Deputy Prime Minister Alexander Novak that Russia intends to cut oil production by 500,000 barrels per day in March.
Novak's representative clarified that reduction in production will affect only crude oil, excluding gas condensate. According to a TASS source in the industry, the size of the cut will be calculated based on the real level of production, and not from the Russian quota under the OPEC+ deal. He also noted that Russia made this decision on its own.
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