Russia Cuts Oil Output Amid Temporary Refinery Maintenance

Russia's Deputy Prime Minister Alexander Novak revealed that the country will slightly reduce its oil output this year due to unscheduled maintenance at domestic refineries. The reduction is temporary, and production is expected to increase once the refineries resume operations.

The forecast for Russia's oil output has been downgraded to a 17-year low, with revised estimates showing a decrease of between 16 million and 20 million tons compared to previous projections. This downward revision affects not only this year but also the next four years, until 2029.

OPEC+, which accounts for about 40% of global oil output, is also experiencing challenges due to the drop in supplies via the Strait of Hormuz. However, Novak emphasized that OPEC's role remains significant, as its production volumes are substantial and account for a large proportion of global exports.