Russia May Decide to Cut Oil Production

One week after Russia declined to substantially trim its daily oil output in cooperation with the Organization of the Petroleum Exporting Countries, the No. 2 oil exporter said it has not ruled out cutting oil production to help prop up sagging prices, Bloomberg reported.

ussia, which exports 9% of the world’s oil, last week said it would only cut 30,000 barrels a day, or 0.5%, a figure that many analysts called a token cut.

PEC said a Russian cut of about 200,000 barrels a day would be more “reasonable.”

At the same time, Russia has lowered its oil price estimate for next year to between $14.50 and $18.50 a barrel, Bloomberg said.

If prices fall below $16.50 a barrel, Russian Finance Minister Alexei Kudrin said, the country could be forced to seek International Monetary Fund assistance.