Fri Apr 28, 2017 09:54AM
Russia’s Energy Minister Alexander Novak.
Russia’s Energy Minister Alexander Novak.

Russia says it has cut its production of crude oil by around 300,000 barrels per day (bpd) as part of an agreement with world’s oil producers to shore up global prices. 

The announcement was made by Russia’s Energy Minister Alexander Novak.

Novak told the domestic media that the country’s oil production in the latest record that had been registered on Thursday was lower than common production levels by 298,000 bpd.  

"As of yesterday, it was about 298,000 barrels [per day]," Novak was quoted as saying by Sputnik news agency.

This follows earlier reports by Kuwaiti media that the crucial agreement by producers to cut their output would be extended when they meet again next month. 

Reports quoted officials from the Organization of the Petroleum Exporting Countries (OPEC) as saying that a consensus had already been made between OPEC and non-OPEC producers to extend cuts by another six months. 

Based on a plan proposed by Saudi Arabia last year, OPEC producers in a meeting in Vienna in December 2016 agreed to cut production by 1.2 million barrels per day (mb/d) for six months beginning from January 2017 in a bid to shore up prices.  

Some non-OPEC producers, led by Russia, joined in December by committing to cut output by 558,000 bpd.  

The agreement exempted key member Iran from the plan, allowing it to increase its production by 90,000 bpd to reach pre-sanction levels of around 4 million bpd.

Nigeria and Libya were also exempted from the planned output cut due to internal conflicts which have already decreased their crude production.