Kremlin confirms oil production cuts

Investing.com - Russia this month has begun to cut oil production in accord with its pact with the Organization of Petroleum Exporting Countries (OPEC) as part of a global strategy by some oil producers to restore the international oil market to a more balanced level, according to Dmitry Peskov, the spokesman for the Kremlin.

Peskov’s statement earlier today was general and was quite devoid of actual production cut numbers.

“Without question Russia is carrying out all the points of the agreement and all the obligations that it took upon itself,” Peskov said.

Yesterday, media in Moscow quoted Russian energy industry sources as commenting 100,000 barrels have been taken out of daily production as per the country’s obligations with OPEC.

These sources said that Russia's average daily production rate for the first week of 2017 was 11.1 million barrels of crude.

Russia removed 300,000 barrels from its November 2016 daily average, or about 11.2 million barrels.

The overall reduction planned by Russia should be reached in April, with overall average daily oil output for 2017 projected by the Energy Ministry at between 11.01 and 11.07 million bpd, according to analysts.

There has been some speculation that the Russians increased production late last year domestically, and are only 'cutting' from this increased level so as to appear to be in harmony with OPEC.