Russian Deputy Prime Minister Alexander Novak said on Friday, “Russia may cut oil output by 5-7% in early 2023 as it responds to western price caps.”

“Russia may cut Oil output by 500,000-700,000 barrels per day,” reported TASS.

“Russia’s natural gas output will fall by up to a fifth this year to 671 billion cubic metres , the Interfax news agency cited Deputy Prime Minister Alexander Novak as saying on Friday, as exports to Europe have plunged,” per Reuters.

The news also mentioned that Russia’s oil output is seen rising 2% this year to 535 million tonnes, Intefax cited Novak as telling state television.

Earlier in the day, Reuters unveiled hopes of a cut in Russian Russia’s Baltic oil exports and triggered the rebound in the WTI crude oil prices. “Russia’s Baltic oil exports could fall by 20% in December from the previous month after the European Union and G7 nations imposed sanctions and a price cap on Russian crude from Dec. 5, according to traders and Reuters calculation,” said the news.

Also underpinning the WTI crude oil rebound could be the risk-positive headlines from China, as well as the US Dollar’s retreat ahead of the key data.

WTI recovers

WTI crude oil prints mild gains around $78.30 after reversing from a three-week high the previous day.

Also read: WTI Price Analysis: Bears take on key support

This article was originally published by Fxstreet.com.Read the original article here.

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