Russia's oil output will decline by some 10 percent year-on-year in 2020, as a result of an output cut deal by global producers, Energy Minister Alexander Novak said Wednesday.
"In May, the production will be approximately down 19 percent from February 2020," Novak said during a video conference with President Vladimir Putin.
"Taking into account the production in the first four months and a gradual decrease, the output is projected to drop by about 10 percent this year compared with last year," he said.
Crude oil output in Russia in 2019 was 560.2 million tons or an equivalent of 11.25 million barrels per day (bpd), a rise of 0.8 percent from 2018.
Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and some other major producers, including Russia, reached an agreement to reduce output to cushion the decline in demand and the price collapse caused by the COVID-19 pandemic.
Under the OPEC+ deal, its participants agreed to cut 9.7 million bpd from May to June, 7.7 million in the next six months, and 5.8 million from January 1, 2021 to April 30, 2022.
Novak said the imbalance on the global oil market is expected to improve, starting from the second half of this year, thanks to the deal.
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