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Russia's Novak Threatens Crude Production Cuts Next Year

OIL

Russia may cut oil output by 5%-7% in early 2023 as it responds to price caps on its crude and oil products by halting sales to the countries that support them, Deputy Prime Minister Alexander Novak said Friday.

  • Novak said the cuts could amount to 500,000-700,000 barrels per day.
  • Various vessel tracking services from Kpler, Vortexa, Bloomberg and Platts have observed significant drop offs in Russian waterborne flows as a result of the G7 price cap and the EU import ban that were implemented December 5.

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