– Oil Jumps After Russia Says It Will Cut 500,000 Barrels Of Oil Output:
Crude prices jumped this morning after a top Russian official said it would reduce oil production by 500,000 barrel-a-day, or about 5% of output, next month, in retaliation against western sanctions, Reuters reported. Deputy Prime Minister Alexander Novak said in a statement on Friday that Russia believes the mechanism of Western price caps on Russian crude and crude oil products is a destructive energy policy:
“As of today, we are fully selling the entire volume of oil produced, however, as stated earlier, we will not sell oil to those who directly or indirectly adhere to the principles of the ‘price cap.'”
“In this regard, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations.”
The Kremlin has frequently mentioned crude output reductions since the EU floated the idea of Russian crude oil price caps last year. The tit-for-tat move creates renewed volatility in oil markets.
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