Russian oil flows hold fast even as Kremlin says output slashed

 

The nation’s shipments slid by 123,000 barrels a day to 3.11 million barrels a day in the seven days to March 24, according to tanker tracking by Bloomberg. The less-volatile four-week average dipped by a similar amount. It’s the sixth straight week they've held above 3 million a day, Bloomberg reports.

Russia pledged to lower output by 500,000 barrels a day from this month through June in response to a Group of Seven price cap on the nation's crude sales. The planned cut has yet to show up in cargo data. Since the reduction was announced oil prices have fallen sharply, suggesting little trader anxiety about the threatened curtailment.

Any production drop will initially be offset by reduced demand from the nation’s refineries during a period of seasonal maintenance. Lost pipeline flows to Europe are also adding to the volumes available for export by sea.