Russian Deputy Prime Minister Alexander Novak said on state television today, Friday, that Russia may reduce its oil production by between 5% and 7% in early 2023, while responding to imposing maximum limits on the prices of its crude and oil products by stopping sales to countries that support those limits.

This comes as oil prices rose in the morning trading.

Novak added that the cuts could range between 500,000 and 700,000 barrels per day, and revealed for the first time details of the Russian response to the price ceiling imposed by the West on Moscow because of its war on Ukraine.

The European Union, G7 countries and Australia imposed a maximum price of Russian oil of $60 per barrel, which took effect on December 5.

This came in addition to the ban imposed by the European Union on imports of Russian crude oil transported by sea, and pledges from the United States, Canada, Japan and Britain to take similar action.

Russian President Vladimir Putin said on Thursday he would issue a decree next week detailing Moscow's response to the price cap.

Novak explained that the decree will ban sales of oil and petroleum products to countries that join the price ceiling and companies that demand its application.

He also indicated that oil production in Russia will grow - according to the results of the current year - by 2% to 535 million tons, and oil refining will increase by 5%.

He revealed a partial decrease in gas production by about 18-20%, stressing at the same time that Russia will produce 671 billion cubic meters of gas this year and sell about 470 billion cubic meters.


Oil goes up

Oil prices rose on Friday amid expectations of lower Russian crude exports from the Baltic region this month, easing fears that a severe winter storm in the United States could wipe out holiday fuel demand growth.

By 01:48 GMT, Brent crude rose 88 cents (1.1%) to $81.86 a barrel.

US West Texas Intermediate crude also increased 1.2% to $78.41 a barrel.

Brent crude is currently trading near $82, while US crude is trading at $78.20.

Russia's exports of Baltic oil may decline 20% this December compared to the previous month, after the European Union and the Group of Seven countries


imposed sanctions and a ceiling on Russian crude prices, according to dealers and Reuters accounts.

"Crude prices are higher as energy traders focus on Moscow's response to the cap on Russian oil prices, without focusing too much on canceling the thousands of flights that will disrupt holiday travel," said Edward Moya, an analyst at OANDA.

And it was decided to cancel more than 4,400 flights in the United States over two days due to the winter storm, in conjunction with the holiday travel season, which some expect to


be the busiest ever.

Brent and US crude are heading for a second weekly gain, supported by expectations of a recovery in oil demand in China, the second largest consumer in the world.