Russian Deputy Prime Minister Alexander Novak said on Monday that expectations of weaker global economic growth were behind a decision by Moscow and its OPEC allies to cut oil output.
Speaking on state television after the OPEC+ group agreed to reduce production by 100 000 barrels per day (bpd) for October, Novak said the global energy market was characterised by heightened uncertainty at the moment.
“We are not talking about price formation, but about the adequacy of supply on 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 OPEC+ countries were largely meeting their production quotas under the deal.
Russia’s lucrative oil exports have become a major target for Western countries over 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 an oil price cap on Russia that could have far-reaching implications for its ability to secure tankers and insurance even on exports beyond the G7.
Novak said the plans for an oil price cap were creating heightened volatility on the world market.