Russia Agrees With OPEC+ a New Reduction in Oil Exports

On Thursday, Russia agreed with the Organization of Oil Exporting Countries and their Allies (OPEC+) a further reduction in the supply of Russian oil to international markets.

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"Yes, we agreed on that but we will announce the details next week," Russian Deputy Prime Minister Alexander Novak told a meeting of ministers with President Vladimir Putin.

The day before Novak confirmed that Russia will maintain the reduction of its oil exports at 300,000 barrels per day in September. He also did not rule out extending the additional voluntary cut to which he and other partners have committed to until October.

"We will see. Now we are following the situation and evaluating the market together with our colleagues from other countries. We will start from what the market demands," he said.

In March, Russia began a voluntary reduction in oil production by 500,000 barrels per day compared to the average production registered in February.

The validity period of this reduction was extended several times. This energy policy was extended in April until the end of 2023 and in June until the end of 2024.

On a related topic, CNBC published an article entitled "Why the World Needs More Oil, Not Less" in which OPEC Secretary Haitham Al Ghais was in favor of policies aimed at maintaining oil production in the coming decades.

"What do toothpaste, deodorant, soap, cameras, computers, gasoline, heating oil, jet fuel, car tires, contact lenses and artificial limbs have in common? If oil vanished today, these and many other vital products and services that use oil or its derivatives would vanish too. Transportation networks would grind to a halt, homes could freeze, supply chains would crash and energy poverty would rise," he said.

The OPEC Secretary argues that the energy transition required to control global warming will not be feasible without oil continuing to satisfy human societies' growing needs.

"The scale of the climate change challenge is daunting, but meeting the world's rising energy demand and mitigating climate change do not have to exist in a vacuum or be at odds with each other. Rather, the world should act to reduce emissions and ensure that people have access to the products and services they need to live comfortably," Al Ghais explained.