Earlier this year Russia boldly pledged to slice its overseas supplies by half a million barrels a day. Now, Russia has decided to extend the cuts into September, tapering the size of the reduction to 300,000 barrels per day.
“Within the efforts to ensure the oil market remains balanced Russia will continue to voluntarily reduce its oil supply in the month of September, now by 300,000 barrels per day, by cutting its exports by that quantity to global markets,” announced Deputy Prime Minister Alexander Novak as part of an effort to ensure balance in the global oil market.
This move is not made in isolation. It comes on the heels of Saudi Arabia’s unilateral decision in July to expand its production by a considerable 1 million barrels a day through September. Since then, oil prices have climbed modesty to around $81 a barrel.
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