In what is set to be the first major supply disruption of 2023, Russia has announced a 500,000 bpd voluntary production cut due to growing pressure from price caps and embargoes.
Oilprice Alert: Whether you are new to the oil and gas industry or an energy market veteran, you will regret not signing up for Global Energy Alert. Oilprice.com's premium newsletter provides everything from geopolitical analysis to trading analysis, and all for less than a cup of coffee per week.
After months of macro-driven price swings, the introduction of the oil products price cap has awakened the spirit of the oil market and brought fundamentals back into the spotlight. Russia’s announcement that it would curb output as a reaction to sanctions is arguably the first major supply disruption of 2023 as protests in Colombia failed to trigger any notable market reaction. Nigerian presidential elections are only three weeks away, so Russia’s production cuts might be the first of many to come.
According to Russia’s deputy prime minister Alexander Novak, Russia will cut oil production by 500,000 b/d in March 2023 as a reaction to the recently introduced product price cap and EU import ban, pledging not to sell its exports to members of the price cap coalition.
Oilprice