MOSCOW: Russia is likely to cutting its oil production by about 300,000 barrels per day (15 million tons a year) and expects OPEC to also limit its output.
Before OPEC meets later this week in Vienna, Russia has spoken to members Venezuela and Saudi Arabia about the need to support the oil market and hopes to press its message on the need for higher prices in Vienna on Nov. 25.
Russian Energy Minister Alexander Novak said last week that Moscow was looking at the option of cutting its oil production, the world’s largest, but said the measure had yet to be agreed.
Quoting sources close to the government, Kommersant said that Russia may offer a cut of 15 million tons next year. At the same time, Russia and Venezuela may suggest that OPEC should limit its output by another 70 million tons.
A source familiar with the matter said the idea in Kommersant was one possible option and that there were other ways of shoring up prices.
Some analysts predict that Russia, the biggest oil producer outside OPEC, may lose some 350,000 barrels per day of output as soon as next year due to weak drilling and low prices, which may slightly support prices.