Russian Deputy Prime Minister Alexander Novak said on Monday that expectations of slower global economic growth were behind a decision by Moscow and its OPEC allies to cut oil production .
Speaking on state television after the OPEC+ group agreed to cut output by 100,000 barrels per day (bpd) by October, Novak said the global energy market was characterized by greater uncertainty at the moment.
“We are not talking about price formation, but about the adequacy of supply in the market, so that on the one hand there is no excess and on the other there is no shortage,” Novak said, adding that the countries of OPEC+ were largely meeting their production quotas under the agreement.
Russia’s lucrative oil exports have become one of the main targets of Western countries for Moscow’s military actions in Ukraine.
The European Union has imposed a partial oil embargo that it says will cut 90% of Russian exports to the 27-member bloc when fully implemented.
And Group of Seven finance ministers last week announced plans to impose a cap on Russia’s oil price that could have far-reaching consequences for its ability to secure tankers and insurance even for exports to countries outside the G7. .
Novak said that plans to limit the price of oil were creating more volatility in the world market.