Russia to Cut Oil Output by 500k Barrels a Day

    Photo: Reuters [via CNBC]

    The Facts

    • On Friday, Russia's deputy prime minister announced plans to cut oil production by 500k barrels per day — roughly 5% of output — starting in March amid economic sanctions imposed on the country by the West.

    • The most recent sanctions include last week's EU-imposed ban on Russian diesel fuel and other refined oil products, and a cap of $100 per barrel on petrol, diesel, and jet fuel agreed by the Group of Seven (G7) countries.

    The Spin

    Anti-Russia narrative

    This is just the latest facet of Putin's energy blackmail following his failed attempt last year to weaponize natural gas. Europe did suffer from high natural gas prices but managed to replace much of the loss from other sources, and prices have since come down. Russia's attempt to pull another stunt like that will most likely fall flat.

    Pro-Russia narrative

    Amid repeated warnings of such a move — that clearly fell on deaf ears — in the case of further price ceilings, this should come as no surprise: It's a natural response to restore market relations following the West's destructive disruptions that upset the volatile global oil market.

    Establishment split



    Sign up to our daily newsletter