Friday, December 23, 2022

Global Oil Prices Rising After Reports That Russia Will Be Cutting Oil Production

Russia could cut its oil production levels in response to the G7's crude price cap. REUTERS/Sergei Karpukhin © REUTERS/Sergei Karpukhin  

Insider: Russia is ready to cut its oil output by 7% early next year to hit back at the EU-led price cap 

* Russia could slash its oil output by up to 700,000 barrels a day, its deputy prime minister said. 

* The US and its allies capped Russian crude prices at $60 a barrel earlier this month. 

* "We are ready to partially cut our production early next year," Alexander Novak told state TV Friday. 

Russia could reduce its daily oil output by as much as 7% early in the new year, in response to the US and its allies capping its crude prices, the country's deputy prime minister said Friday. 

Alexander Novak said it was unacceptable for Russia to be dependent on decisions made by unfriendly countries, state-run news agency Tass reported. "We are ready to go for a partial reduction in production," Novak said in an interview with the state-run Rossiya-24 TV channel, per Tass. 

"I assess the risks, when we are at the beginning of next year, we may have a reduction of somewhere between 500,000 to 700,000 barrels per day. This is about 5-7% for us," he said.  

Read more ....  

WNU Editor: This was expected. Sanctions has resulted in a decrease in demand for Russian oil .... Putin forced to slash oil output by half a million barrels a day (The Telegraph). But this is one of those situations (again) where we will see Russia exporting less energy, but with the accompanying jump in prices because of this shortfall, Russian energy companies will be making just as much money (if not more) as they were before. 

Here is an easy prediction. Years from now when historians and economists study the impact of sanctions on Russia, the resource superpower of the world, they will conclude that these self-imposed sanctions damaged the West far more than they did on Russia. 

Global Oil Prices Rising After Reports That Russia Will Be Cutting Oil Production 

Russia warns of oil production cut -- RT  

Oil rises after Russia says it could cut output due to price cap -- Reuters 

Russia threatens to slash oil supplies in 2023, spooks markets -- Al Jazeera

5 comments:

Anonymous said...

The intent of the sanctions is to damage western Europe. The writing is on the wall for the far abroad; the near provinces must now be consumed.

Anonymous said...

Russia is not hurt, but some troops are not being paid and many troops are not kitted out properly?

Anonymous said...

I think the Biden people didn’t think it through and the world knows this. The world sees imbeciles in charge in DC and what to break free from them regardless of political power in DC. These sanctions hurt all nations and caused chaos in most commodity markets.

Anonymous said...

"You Keep Using That Word, I Do Not Think It Means What You Think It Means"

The word applies to Putin as well. Putin thought he could defeat Ukraine in 3 weeks. ten months later here we are.

I would teach you English, but it will cost you $300 an hour plus benefits.

Anonymous said...

"Putin thought he could defeat Ukraine in 3 weeks"

Can we get a source on this?