Russia's Energy Ministry requires oil companies to drop production by 20% from February

Reuters reported that Russia's energy ministry has asked domestic oil producers to reduce their oil production by 20% from February levels, which is also in line with Moscow's commitments
under the global agreement.

OPEC+ (Organization of the Petroleum Exporting Countries and other large oil producers, led by Russia), had previously agreed to cut its total oil production by 9.
7 million barrels per day in May and June in response to an oversupply caused by the coronavirus crisis
.

Like other countries that are not part of the OPEC+ agreement, such as the United States and Norway, the reduction in total global oil production could reach 20 million b/d, or one-fifth
of world oil production.

Under the deal, Moscow must cut oil production by 2.
5 million b/d starting in May and use a benchmark level
of 11 million b/d.
This figure includes crude oil only and does not include condensate, a type of light oil
.

Russia produces 600,000 to 700,000 b/d of condensate, but no specific production figures
are available.
Total production in February was 11.
29 million bpd
.

Russia's energy ministry told oil producers last week to cut its oil production by 19 to 20 percent from February levels, which would bring Moscow's oil production in line with the agreement's goals
, sources familiar with the plan said.

The energy ministry and major oil producers did not immediately respond to Reuters' requests
for comment.
Unlike production, export volumes are not limited
by global transactions.

Vagit Alekperov, head of Lukoil, Russia's second-largest oil producer, said the company would cut production by 40,000 tonnes per day (290,000 b/d).

Russia's oil and gas condensate production is 11.
27 million b/d so far this month, down from last month's average of 11.
29 million b/d
, an energy industry source said.