Russia sees modest oil output cuts in January

SABETTA, Russia, Dec 11, (RTRS): Russia plans to cut its oil output by at least 50,000 to 60,000 barrels per day (bpd) in January, its energy minister said on Tuesday, less than its final target under a global production deal reached last week, aiming for gradual, smooth reductions.

This would mean Russian oil output coming in at around 11.35 million bpd next month, off the post Soviet-record high of 11.41 million bpd reached in October and down from 11.37 million bpd last month.

Energy Minister Alexander Novak reiterated to reporters that the country planned to cut its oil output gradually.

“Everything will depend on technological and climate possibilities. We will get proposals from the companies,” Novak said.

“We will see how the situation would evolve,” added Novak, who is a part of Russian Prime Minister Dmitry Medvedev’s delegation to the Arctic Yamal peninsula where local gas producer Novatek is expanding liquefied natural gas production.

The Organization of the Petroleum Exporting Countries and some nonOPEC producers including Russia last week said they would curb oil output by a combined 1.2 million bpd.

They are looking to prop up oil prices that plummeted below $60 per barrel from a four-year high above $85 hit in October on oversupply worries.