Why Russia Finally Decided To Cut Its Oil Production

Just before announcing a 500,000 bpd production cut, Russia’s Deputy Prime Minister Alexander Novak had warned that there was a risk of lower oil production this year. That risk, Novak said, was due to the EU import bans and the price caps on Russian crude and petroleum products. “Yes, there are such risks. But we will assess them in the near future,” Novak told reporters, as carried by Russian news agency TASS. Until today’s announcement, Russia’s oil production and exports had held resilient, defying early expectations…