Russia has agreed with its OPEC+ partners on further cuts to its crude oil exports, Deputy Prime Minister Alexander Novak told President Vladimir Putin.
“We have agreed, but we will announce the main parameters next week,” Novak said in a televised government meeting with Putin.
Russia has pledged to curb its crude exports by 500,000 barrels a day in August, then cut them to 300,000 barrels a day next month. On Wednesday, Novak said Russia was discussing extending the export cut from September to October, according to media reports.
The statement by Russia, one of the two de facto leaders of the Organization of the Petroleum Exporting Countries and its allies, comes amid market expectations that Saudi Arabia will expand its oil supply by 1 million barrels to day in a month of October.
Although global crude oil markets are tightening as demand climbs to record levels, this summer’s price rally has stalled amid growing concerns about economic growth in China. The withdrawal poses a risk to Riyadh, which has seen its foreign reserves fall to their lowest level since 2009.
Oil prices soared to a six-month high above $88 a barrel in London last month, but have since eased as China, the biggest importer, grapples with crises that from youth unemployment to turmoil in its shadow banking and real estate industries.
Russia’s export cuts in September will be measured against the average level from May to June, Novak said earlier this week. While Novak did not provide a precise benchmark figure, industry data seen by Bloomberg show the country exported an average of 4.86 million barrels per day from May to June by sea and pipelines.
