Russian Deputy Prime Minister: Russia pledges to unveil a new OPEC+ supply cut deal next week

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Russian Deputy Prime Minister Alexander Novak informed President Vladimir Putin on Thursday, that Moscow had agreed with its OPEC+ partners to reduce oil exports, and that it would announce the new main parameters of the agreement next week.

In addition to the current OPEC+ cuts, Russia and Saudi Arabia are making additional cuts, so the signal from Moscow may mean that both countries are on their way to extending those voluntary cuts until October.

During a government meeting broadcast on television, Putin asked Novak, the first official in front of him on the oil file, if he had agreed with OPEC+ partners to reduce oil supplies.

Novak replied, “We’ve agreed, but we will announce the main parameters of the agreement next week”.

It’s not yet clear however what features can be detected, and Novak’s office declined to give more details.

The OPEC organization and its allies, led by Russia, began restricting supply in late 2022 to support the market, and in June extended production cuts into 2024.

Russia said separately it would cut oil exports in August by 500,000 bpd, or about 5% of its output, and by 300,000 bpd in September.

Novak said on Wednesday that his country could extend the cuts until October, but it was too early to say definitively.

Analysts expected Saudi Arabia to extend its voluntary cut in oil supplies by one million barrels per day for the third month in a row in October.

Riyadh this month extended the voluntary cut until September.

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