Russia plans to cut oil exports from its western ports by up to 25% in March versus February, exceeding its announced production cuts in a bid to lift prices for its oil, three sources in the Russian oil market said.
Russia’s Energy ministry declined to comment. Russia’s pipeline monopoly Transneft did not immediately respond to a Reuters request for comment.
Russia had already announced plans to cut its oil production by 500,000 barrels per day in March, amounting to 5% of its output or 0.5% of global production.
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Russian officials said the voluntary output cuts in March would last one month and would follow the start of Western price caps on Russian oil on Dec 5. and oil products on Feb. 5. The cut will be made from January output levels.
Russia has so far managed to reroute most of its oil exports from Europe to India, China and Turkey, which happily snapped up cheap barrels and ignored Western sanctions.
But Moscow has struggled to re-route exports of refined product away from Europe after Indian, Chinese and Turkish refiners flooded the market with fuels produced from Russian oil.