Russia plans to cut its oil production by around 5% from March, a reduction of around 500,000 barrels per day. Sign that the sanctions are starting to bite.
Why is this important?
Since the start of the war in Ukraine a year ago, a parallel energy war has sprung up between the West and Russia. It intensified in recent months following the EU and its allies introduced various sanctions once morest Russian oil. Now it’s Russia’s turn.In the news : The reduction in production is a response to Western measures aimed at hitting the Kremlin’s war chest.
- After the announcement of the news, the price of a barrel of Brent oil, the benchmark oil price in our region, rose by more than 2.5%. At the time of writing this article, the barrel is trading at 86.52 dollars, the equivalent of approximately 80.83 euros.
- Russia is the world’s second largest oil exporter following Arabia
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