Russia has started to further cut its oil production and the level of reduction is expected to reach 50,000 barrels per day (bpd) by the end of January, Russian Energy Minister Alexander Novak said on January 11, 2019.
«We are reducing production since October. Our companies stated that they could reach a total reduction of about 50,000 bpd this month compared with October 2018. We could probably reach this figure by the end of the month,» Novak was quoted as saying by Sputnik.
According to the minister, Russia's current level of oil output reduction has exceeded 30,000 bpd. On December 7, the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries reached an agreement at a meeting in Vienna, which stipulates an output cut totaling 1.2 million bpd during the 1st 6 months of 2019.
Under the deal, OPEC members and non-OPEC producers will have to reduce their oil output by 800,000 bpd and 400,000 bpd respectively.
The energy sector accounted for 25 % of Russia's gross domestic product and nearly 45 % of federal budget revenues, according to Alexander Novak.
