Author: Arsenio Toledo
![Image: Russia cuts oil production by 500,000 barrels per day in response to Western price cap](https://www.naturalnews.com/wp-content/uploads/sites/91/2023/02/Crude-Oil-Price-Crash.jpg)
(natural news) Russia, on Friday 10 February, Reduce oil production by 500,000 barrels per day In March, in retaliation for US and European Union-led policies Russian crude oil price ceiling and other petroleum products.
“As of today, we sell the entire amount of oil produced. No,” Russian Deputy Prime Minister Alexander Novak said in a statement. “In this regard, Russia will voluntarily cut production by 500,000 barrels per day in March. This will help restore market relations.” (Related: Underinvestment in energy production capacity will push oil prices above $100 a barrel this year.)
Novak added that Russia has already discussed the decision to cut production with some members of the Organization of Petroleum Exporting Countries Plus (OPEC+).Several OPEC+ representatives who spoke with Reuters The organization said it had no plans to act on Russia’s announced oil production cuts.
The decision comes less than two weeks after the OPEC+ panel, of which Russia is a member, supports the group’s current production policy and leaves the production cuts agreed last year in place.
Price cap on Russian oil exports forces Moscow to retaliate
The Kremlin has a price cap that caps the price of Russian crude shipped to non-Western countries at $60 a barrel. The goal of this price cap is to limit Russia’s ability to profit from oil exports while keeping oil flowing to the world to prevent price spikes like those seen last year.
The West has set this cap so that Russia can use the monetary gains from its oil trade to fund special military operations against Ukraine.
The price cap, first introduced by the G7 nations of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the EU, will ban Western companies that control shipping and insurance from servicing Russian oil. is enforced by Sold above the maximum price. The price ceiling is backed by the EU embargo on most Russian petroleum products.
Russia claims its decision to cut oil production is retaliation for the price cap.
“Russia considers the ‘price cap’ mechanism in the sale of Russian oil and petroleum products to be an interference in market relations and a continuation of the West’s destructive energy policies,” Novak said. rice field.
The last time Russia cut oil production was in April 2022, when output fell by nearly 9% after the introduction of Western sanctions against Ukraine. Since then, however, Russia has already built up a vast network of logistics chains for oil sales, most of them directed to Asia rather than Europe or America.
Russian oil production actually rose 2% last year, despite a cut to 10.7 million barrels per day, thanks to a surge in sales to Asia, particularly Turkey, India and China.
Read more articles on the global energy situation NewEnergyReport.com.
watch this clip from fox business Featuring Republican Rep. Byron Donald Discussing Why Russia still makes record profits on oil exports Despite Western sanctions.
This video is news clip channel Brighteon.com.