Crude Oil
Russia isn’t bluffing.
Reuters reports that Russia’s government has ordered companies to reduce oil output in the second quarter to ensure they meet a production target of 9 million barrels per day by the end of June. That would match OPEC+ pledges.
The report cites three unnamed industry sources and says companies were given specific targets.
Russia has sent confusing messages about whether the cut was new or affirmed old pledges. This would peg production to a level just above 9mbpd from 9.5 mbpd early this year and a peak of 11.7 mbpd in 2019.
WTI crude oil is up $1.73 to $82.36 and this certainly isn’t hurting.