OREANDA-NEWS  Russia's decision to extend the voluntary reduction of oil production by 500 thousand barrels per day from March to the end of June is probably due to two factors: the decline in world prices and the start of the repair season at Russian refineries, experts from the Center for Energy Development commented (CRE).

Russian Deputy Prime Minister Alexander Novak said on Tuesday that the decision on Russia's voluntary reduction of oil production in the amount of 500 thousand barrels per day has been extended and will be valid until the end of June 2023. Previously, it was adopted only for March. Its purpose is to contribute to the restoration of market relations against the background of the introduction by some countries of a price ceiling mechanism for Russian oil and petroleum products.

"We believe that the decision to extend the production cut was due to two circumstances. Firstly, the decline in world oil prices in recent weeks has created pressure on the Urals quotes. Secondly, repairs at the refinery in April-May would have led to an increase in crude oil exports from Russia, if not for the government's decision to reduce production," the CRE believes.