Russia Decides Not To Boost Oil Output

oilprice.com
2 min read
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Russia is not raising its crude oil production because it doesn't make sense for Russian firms to boost output while the market is oversupplied
, a Russian government official told Bloomberg on Wednesday, the day on which the OPEC+ pact expired and Saudi Arabia is gearing up to flood the market with oil.

While the Saudis have been pledging record oil exports over the next few months after the OPEC+ deal with Russia collapsed in early March, Russia has hinted that the current market situation with oil prices so low and the surplus so high wouldn't make economic sense for its firms to boost oil production now.

Early in March, Russia's Energy Minister Alexander Novak said that Russia could raise its oil production by 200,000 bpd to 300,000 bpd in the short term, with a potential for up to a total increase of 500,000 bpd.

But as oil prices continued to slide and demand continued to plunge, Russian companies signaled last week that boosting production might not be the…
Tsvetana Paraskova
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