Russian Oil Companies to Be Ordered to Cut Production: Reuters Sources

Russian oil companies have been ordered to reduce output in Q2 to ensure they meet a production target of 9 mn bpd by the end of June in line with its pledges to OPEC+ according to three Reuters sources on Monday.

• Reuters sources said the production cuts would facilitate a seasonal peak in maintenance at refineries, many of which had already reduced fuel production as a result of outages and Ukrainian drone attacks.
• Russian Deputy PM Novak has said Russia will reduce output by an extra 350,000 bpd in April, with exports will be cut from March levels by 121,000 bpd. In May, output to be cut by 400,000 bpd and exports by another 71,000 bpd. In June, all the additional cuts will be from oil output.
• Reports of Russian oil adds further support for oil Monday on a slew of bullish factors including Russia/Ukraine escalations, Middle East instability and an increasingly unlikely extension for Venezuela’s sanctions.