RUSSIA Cuts Oil Production – Huge Fall in Russian Income as Further 471,000 BPD Reduction Announced

Video Summary

Russia is increasing its oil production cuts by 471,000 barrels per day, which is an additional reduction of 17.72 million barrels per year. This decision was made in response to OPEC+’s agreement to cut 2.2 million barrels per day, with Russia being the biggest country involved in the cut, committing to reduce production by 971,000 barrels per day. The financial implications of this cutback on Russia are significant, with a loss of $13 billion in annual revenue, and potentially indicating that the country is struggling to maintain its production levels due to the ongoing sanctions and restrictions on its oil facilities.

According to the video, the top 10 oil-producing countries in 2022, with Russia producing 10.3 million barrels per day, but by 2020, production had decreased by 7% to 9.55 million barrels per day. The current price of oil is around $75 per barrel, which means that Russia is losing $75 million in daily revenue.

The video also discusses the potential production issues facing Russia, with aging facilities and a lack of access to new technology and expertise, leading to concerns about the future viability of its oil production facilities. The reduction in production is leading to a significant loss of income, with Russia cutting back on 2 million barrels per day over the past year, resulting in a loss of $50 billion in annual revenue.

The overall impact of OPEC+’s announcement to further cut back on production will be to increase oil prices, which will be bad news for the global economy.

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