Russian Deputy Prime Minister Alexander Novak said that individual companies would decide whether to cut oil production or exports in August but Russia’s task was to reduce supplies to world markets, the TASS news agency reported.

Russia said it would cut oil exports by 500,000 barrels per day (bpd) in August, but it was not clear from what level it would reduce supplies. There were also conflicting signals about whether Russia would cut the corresponding amount of oil production.

“Companies will decide on their own how they will act: either they will reduce exports or reduce production. But in general, the task is to reduce supplies to world markets,” Novak was quoted as saying by TASS.

Russia has already pledged to reduce its oil output by around 500,000 bpd, or some 5% of its oil production, from March until year-end.

Novak said that Russia kept unchanged its oil output forecast for this year at 515 million tons (10.3 million bpd).

Source: Reuters (Reporting by Vladimir Soldatkin; Editing by Elaine Hardcastle)