Russia promises to unveil new OPEC+ supply cut deal next week

By Olesya Astakhova and Vladimir Soldatkin

MOSCOW (Reuters) -Russia has agreed with OPEC+ partners to reduce the export of oil and will announce the new main parameters next week, Deputy Prime Minister Alexander Novak told President Vladimir Putin on Thursday.

Russia, the world’s second largest oil exporter, has been cutting output and exports in tandem with Saudi Arabia on top of existing OPEC+ reductions so the signal from Moscow indicates both nations may extend those voluntary cuts into October.

Putin asked Novak, his point man on oil, at a televised government meeting if he had agreed with OPEC+ partners to reduce the supply of oil to world markets.

Novak replied: “We have agreed, but we will announce the main parameters next week, publicly.”

It was not immediately clear which parameters could be revealed and Novak’s office declined additional comment.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, began limiting supplies in late-2022 to bolster the market and in June extended supply curbs into 2024.

Russia has said separately that it would cut oil exports by 500,000 barrels per day, or around 5% of its output, in August and by 300,000 bpd in September.

Novak said on Wednesday that Russia may extend the cuts into October, though it was too early to say definitively.

Analysts also expect that Saudi Arabia will likely roll over a voluntary oil cut of 1 million barrels per day for a third consecutive month into October.

Earlier this month, Riyadh extended the voluntary cut into September, with the energy ministry saying that it could be “extended, or extended and deepened”.

Brent oil prices in July were up 14% on the previous month, the biggest monthly increase since January 2022. The price have increased by around 1% on the day so far on Wednesday to $86.7 per barrel.

(Editing by Guy Faulconbridge.)