China News Agency, Moscow, October 5 (Reporter Tian Bing) Russian Deputy Prime Minister Novak said on the 5th that if Western countries impose price caps on Russian oil, if Russia cannot transfer oil to other markets, Russia will It will cut production to the necessary level and will not supply oil to price-limiting countries.
According to the official website of the Russian government on the 5th, Russian Deputy Prime Minister Novak, who is in charge of energy work, participated in the 33rd "OPEC+" organized by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries held in Vienna, Austria as co-chair. Sub-Ministerial Conference.
Combined with uncertainties in the global economy and the oil market, all parties at the meeting reached a consensus on reducing oil extraction by 2 million barrels per day from November and extending the relevant agreement until the end of 2023.
Novak said the decision to drastically reduce oil production was linked to recession forecasts for economically developed countries, including the European Union and the United States, and was prompted by refinancing, inflation and rising energy prices.
A slowdown in the global economy may lead to a reduction in raw material consumption and investment in the oil and gas industry.
The forecast for Russia's oil production cuts is not obvious, and its production in 2023 will account for 93%-94% of its production in 2022.
According to Russian media reports, Novak said in an interview that in the context of the relevant production reduction decisions made by "OPEC+", Russia's oil and condensate production will be 530 million tons in 2022, and about 490 million tons in 2023. Ton.
Russia's oil production quota will be reduced from the current 11 million barrels per day to 10.5 million barrels per day.
Novak said that the Russian side believes that the oil price of 70 US dollars per barrel is suitable, and Russia has prepared its 2023 budget according to this price.
At present, the exchange rate of the ruble has a strong trend. For Russia's oil exploration and economy, such socio-economic forecast parameters are the most suitable.
Novak warned that if Western countries impose price caps on Russian oil, Russia will reduce production to the required level if Russia cannot transfer oil to other markets.
He said that Russia opposes this non-market approach, which is very unfavorable to the energy market and will only lead to deficits and rising energy prices, and consumers will pay for it.
He emphasized that Russia will not supply oil to consumer countries that implement oil price caps, but only to consumer countries that ensure market mechanisms.
It is reported that the EU is mulling a new round of sanctions against Russia, including limiting the price of Russian oil.
In addition, Novak said that the decision of EU countries not to set a price cap on Russian gas was rational because the gas market is more complicated than the oil market.
He pointed out that the EU has discussed the possibility and necessity of setting a natural gas price ceiling, but at present, a rational decision has been made, otherwise it will have an adverse impact on the European energy market and on the European energy supply.
He also said that if European countries make the necessary legal decisions on certification and removal of restrictions, Russia can supply gas to Europe in a short period of time through an undamaged natural gas pipeline of Nord Stream-2.