Russia May Implement Oil Output Cut of Up to 700,000 Barrels per Day

An aerial view shows the Vladimir Arsenyev tanker at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia, on Aug. 12, 2022. Tatiana Meel/Reuters

Russia’s Deputy Prime Minister Alexander Novak has revealed a possible cutting down of oil output by around 500,000–700,000 barrels per day, early next year as a retaliatory response to price caps imposed by G7 nations on Russian crude exports.

While speaking to the local Rossiya-24 TV channel, the deputy prime minister said the reduction by 500,000–700,000 barrels would equate to around 5–6 percent of what Russia is currently outputting. “We’ll try to find some common ground with our counterparts to prevent such risks,” Novak said. “But right now we’d rather take a risk of a production cut than stick to the policy of selling in line with the threshold.”