Russian Oil Major To Cut 290,000 Bpd As Crude Falls Into Negative Territory | OilPrice.com

By Tsvetana Paraskova - Apr 20, 2020, 2:15 PM CDTLukoil, the second-largest oil producer in Russia, plans to slash its crude oil production by 18 percent, or by 290,000 bpd, as part of the new OPEC+ production cut deal, president and chief executive Vagit Alekperov told Russia’s news agency Interfax on Monday. Lukoil plans to reduce its oil production by 18 percent, or by more than 40,000 tons per day – which is equal to more than 290,000 barrels per day – Alekperov told Interfax, adding that Lukoil and all other oil firms in Russia would fulfill the quotas as per Russia’s energy ministry orders. Early on Monday, Brent Crude was trading at around $27 barrel, while the U.S. benchmark price WTI Crude was tumbling by nearly 30 percent at $13 a barrel, due to Tuesday’s expiry of the prompt-month May contract and the shrinking storage amid unprecedented demand loss in the U.S. According to Interfax, Russia’s share of the OPEC+ cuts would be 1.8 million bpd in May and June compared to April. In reality, cheating with quotas has been an art in Russia since the start of the OPEC+ alliance more than three years ago. In the new deal, which lacks clear mechanisms for compliance observance, Russia’s target for oil production is 8.5 million bpd in May and June, Vitaly Yermakov, and James Henderson of the Oxford Institute for Energy Studies wrote in a paper last week. Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. Oil Falls As Saudi Arabia Launches New Price War With Record Discounts Canada’s Biggest Oil Driller Backs Global Production Cut Norway Might Join Output Cuts If Major Producers Reach A Deal