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Oil prices rose more than 2 percent on Friday as Russia announced plans to reduce oil production next month after the West imposed price caps on the country’s crude and fuel. Brent crude futures rose $1.89 to $86.39 a barrel. U.S. WTI crude futures rose $1.66 to $79.72. Brent posted a weekly gain of 8.1 percent, while WTI gained 8.6 percent.
Russia plans to reduce its crude oil production in March by 500,000 barrels per day, or about 5 percent of output, Deputy Prime Minister Alexander Novak said. Western nations have imposed restrictions, trying to choke off Russia’s oil revenues in response to the country’s actions in Ukraine.
The production cut indicates that the European Union’s recent price cap and ban on Russian oil products, which came into effect on Feb. 5, have had some impact. Most analysts have already predicted that Russian production could fall by 700,000-900,000 in 2023. Russia’s output last year defied predictions of a decline, but its oil sales will prove more difficult in the face of the new sanctions.
