Russia to cut oil exports in bid to support global prices 

Gazprom said it has set a new daily record for gas deliveries to China this weekend.

The Russian government said on Sunday it would step up oil export cuts in December by potentially 50,000 barrels per day or more, earlier than promised, as the world's biggest exporters try to support the global oil price. 

Saudi Arabia and Russia, the world's two biggest oil exporters, called this month for all Opec+ members to join an agreement on output cuts after a fractious meeting of the producers' club. 

Russian president Vladimir Putin visited Riyadh shortly after the meeting of Opec+, which brings together the Organisation of the Petroleum Exporting Countries, Russia and other allies. 

Russia had pledged to a cut of 300,000 daily barrels compared with the May-June exports — and to keep at that level until the end of the year. 

In December, Russia agreed to deepen those cuts to 500,000 daily barrels in the first quarter of 2024. 

It comes after the price of global crude oil has increased last week, but only after a number of weeks of consecutive declines as traders expressed scepticism about the producers' group chances of imposing output cuts to support oil prices. 

The price of Brent crude was trading at just below $77 a barrel late last week, up in the past week. 

Traders have also been focusing on forecasts of demand for oil next year as the world economy continues to struggle amid still-high levels of inflation and interest rates.   

Meanwhile, Russia’s Gazprom said it has set a new daily record for gas deliveries to China this weekend, underscoring the importance of its giant neighbour after it all but lost the European market over the war in Ukraine. 

While it did not disclose the volume of gas sent to China, Gazprom said it is working to ramp up supplies to Beijing via the Power of Siberia pipeline. 

An addendum to the gas supply contract with China’s CNPC allowed the Russian state-owned company to increase flows from mid-November. 

Officials from the companies also discussed potential gas supplies via the planned Power of Siberia 2 pipeline via Mongolia at a meeting in Beijing. 

Russia expects an agreement between Gazprom and CNPC on a contract to supply gas through Power of Siberia 2 will be reached as soon as possible, deputy prime minister Alexander Novak said.