Kuwait minister: Russia may cut by 400,000 barrels

17/12/2008

Russia may cut crude oil production by as much as 400,000 barrels a day following the monthly meeting of the Organisation of the Petroleum Exporting Countries (Opec), Kuwait's oil minister has claimed.

Speaking to Bloomberg Television, Mohammed al-Olaim said that Igor Sechin, who will be in attendance at the meeting in Algeria, is "promising to act positively" in response to Opec cuts.

Russia is not a member of the cartel and if it cuts production, it will be the first time that the country has coordinated supply constraints with Opec.

"We think they will seriously do so," said Mr al-Omain, suggesting that a 400,000-barrel-a-day cut was a possibility.

Meanwhile, an anonymous source known to Bloomberg said that it would probably restrict supply by at least 300,000.

Such a move could have a dramatic effect on the price of heating oil, which has fallen in recent months along with headline oil prices.