Russia's Novak: companies to decide if they cut oil exports or output - TASS
MOSCOW, July 13 (Reuters) - Russian Deputy Prime Minister Alexander Novak said on Thursday 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.
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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.
Novak said the decision to reduce oil supplies in August would help balance the oil market during a period of low demand.
"This means that we will ship less, Russia will supply less to the oil markets," he 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, starting from March.
Novak said Russia was keeping unchanged its oil output forecast for this year at 515 million tons (10.3 million bpd).
Russia needs to keep the domestic market awash with enough fuel to meet rising local demand in the summer driving season. It also has to tackle soaring wholesale gasoline prices, pushed up by shortages of supply and idle oil refining capacity.
Novak said on Thursday that the situation with retail fuel prices in Russia was "stable". (Reporting by Vladimir Soldatkin; Editing by Elaine Hardcastle and Jan Harvey)