He oil price intermediate of Texas (WTI) closed this Friday with a rise of 2.1%, to $79.72 a barrel, thus gaining almost 9% during this week, after Russia announced that it will reduce its oil production by 500,000 barrels per day in March (bd).
At the close of business in NYWTI futures contracts for March delivery gained $1.66 from Thursday’s close.
Moscow’s measure follows the cap imposed at the end of last year by the Group of Seven most developed countries (G7), Australia and the European Union (EU) to Russian crude and derivatives for its military campaign in Ukraine.
“Today we are completely selling all the volume of oil produced; however, as stated above, we will not sell oil to those who directly or indirectly adhere to the maximum price principle,” Deputy Prime Minister Alexander Novak told local media, according to the official news agency. TASS.
“In this sense, Russia will voluntarily reduce production by 500,000 bd in March. This will help restore market relations,” said the person in charge of the country’s energy policy and negotiations with the alliance. OPEC+.
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The Deputy Prime Minister recalled that Russia considers the mechanism of caps on Russian crude and oil derivatives “an interference in market relations and a continuation of the destructive energy policy of Western countries.”
The Western cap on Russian oil was introduced last December and sets a price ceiling of $60 a barrel. In addition, on February 5 another cap on Russian oil products of $100 per barrel for products that are sold at a premium (gasoline and diesel) and $45 for derivatives that are sold at a discount over oil came into force.
The Kremlin responded with a decree from the president, Vladimir Putinwhich entered into force on February 1 that prohibits the sale of Russian crude at a ceiling price, although the president can make exceptions based on a special decision.
On Wednesday, weekly data on the commercial crude oil reserves published by the US Government showed an increase of 2.4 million barrels, slightly less than expected.
For their part, the gasoline inventories and distillates from the United States also increased last week.
Meanwhile, natural gas futures contracts for March rose $0.05 to $2.503, and gasoline futures due the same month added $0.08 to $2.51.
