Page 79 - bne IntelliNews monthly country report Russia February 2024

9.1.1b Oil sector news
● Production
Additional oil production cuts announced by members of the OPEC+
group at the start of December are failing to impress the market.
1mn barrels of those cuts will come from Saudi Arabia, which is extending a reduction first made in March for another three months. The market was expecting that, and it won’t do anything to lower current production levels.
Russia said back in February it would axe 500,000 barrels a day from its production in response to sanctions and a price cap on exports imposed by the Group of Seven nations. That decrease was previously extended to the end of 2024.
Now Moscow announced it would slash oil exports by 500,000 barrels a day in the first quarter. Saudi Arabia would have preferred that Russia commit to a further output cut but couldn’t convince leadership.
An export reduction, however, must inevitably follow scaled-back output, unless you believe that Russia’s oil consumption has suddenly surged by 14%. They are just the same thing, rebranded.
79 RUSSIA Country Report February 2024 www.intellinews.com