Domestic oil producers have been asked by the Russian energy ministry to reduce oil output by around 20 percent from their average February levels, which would bring the country in line with its commitment under a global deal.
The OPEC and other large oil producers led by Russia, a group known as OPEC+, agreed to cut their combined oil output by 9.7 million bpd in May and June in order to combat oversupply triggered by the coronavirus crisis.
The reduction with other countries which are not a party to the OPEC+ deal in total global oil output could be 20 million bpd (20 percent of the world’s oil production). Russia, under the deal, has to slash its oil output from May by 2.5 million bpd. Lukoil, Russia’s second-biggest oil producer, would cut its output by 40,000 tonnes per day (290,000 bpd).
Following the global oil output cut deal by OPEC+, Russian companies have significantly revised down their plans for oil exports in May. Down from 11.29 million bpd on average in March, oil and gas condensate production in Russia so far this month stood at 11.27 million bpd.
