Russia mandates oil production cuts for its companies – Reuters

The Russian government has mandated that companies cut oil production in the second quarter to 9 million barrels per day by its commitments to OPEC+, according to Reuters sources.

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The government has set specific targets for each company to reduce production, according to the sources.

Russian oil production in April, May and June is expected to decline by about 3.6%, 4.1% and 4.9%, respectively, compared to March, according to Reuters calculations.

In April, Russia will reduce its oil exports by 121,000 barrels per day compared to the March level. In May, it will be reduced by another 71,000 barrels per day.

Russia has closed official statistics on crude oil production, but independent calculations suggest that Russia produces 9.5 million barrels per day.

The production cuts coincide with the seasonal peak of maintenance at oil refineries, many of which have already reduced fuel production due to operational disruptions and drone attacks, the agency reports.