Russia’s Latest Output Cut Shows Its Oil Weapon Is Weakening

On February 10, Russian Deputy Prime Minister Alexander Novak announced that Russia plans to cut its crude oil production by 500,000 barrels per day in March—that is, by approximately 5 percent of its total output at the time of writing. The Kremlin has described the move as retaliation for the Western sanctions regime and price caps (Interfax.ru, February 10). However, market observers reject this explanation, instead stipulating that Moscow has been forced to adjust its oil production due to the impact of sanctions coupled with various…