Russia plans to cut March oil output by 500,000bpd, Novak says

Russia plans to cut March oil output by 500,000bpd, Novak says

Russia plans to cut its March oil production by 500,000 barrels a day in response to the western price caps, said Deputy Prime Minister Alexander Novak.

The retaliatory output cut, which is the equivalent of about 5% of January output, has been hinted at repeatedly by the Kremlin since the European Union and G-7 began discussing capping the price of Russian exports. The move threatens renewed turmoil in an oil market that has otherwise taken in its stride the EU bans on most seaborne imports of Russian oil.

Crude prices jumped on the news, with Brent erasing earlier losses to rise as much as 2% to $86.50 a barrel as of 8:50 a.m. in London.