Russian Deputy PM Novak says Russia is to voluntarily cut production by 500k BPD in March [oil only]; price cap on Russian oil and oil products interfere with market relations; reiterates will not sell oil to those who adhere to the price cap.
- There is a risk that oil price caps will be applied to other global economy sectors.
- Will take further actions depending on the market situation.
Reaction details (08:29)
- In an immediate reaction to Novak announcing Russia is to cut production, WTI Mar'23 spiked from USD 77.87 to USD 78.01/bbl, before extending to a USD 78.84/bb session high over the course of five minutes. Over the same time frame, Brent Apr'23 rose from UD 84.17/bbl to USD 84.53/bbl before printing a high of USD 85.41/bbl.
- In the 30 minutes since Novak's remarks, WTI Mar'23 and Brent Apr'23 have printed session highs of USD 80.06/bbl and USD 86.69/bbl.
Analysis details (08:30)
- Late-2022, Novak intimated that Russia could cut oil output by as much as 500-700k BPD in response to the price caps.
10 Feb 2023 - 08:23- EnergyImportant- Source: Newswires
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