Russia to cut oil output by 500,000 barrels a day

Russia said on Friday that it will oil production by 500,000 barrels a day next month in retaliation against Western sanctions over the war in Ukraine.

Oil prices jumped on news of the cut, which is equivalent to around 5% of January output, with Brent crude up 2.2% at $86.37 a barrel at 1210 GMT.

The output reduction, announced by Deputy Prime Minister Alexander Novak earlier, follows the West’s decision to impose price caps on Russian crude and oil products.

Novak said it "will contribute to the restoration of market relations".

According to Reuters, Russia made the decision to reduce production without consulting OPEC+, which includes Saudi Arabia.