The Russian President has announced that Russia was ready to join OPEC's efforts to support low oil prices by freezing or cutting oil production, sending global oil prices to the highest levels of 2016 (US$51.35/bbl in New York and US$53.14/bbl in London). In late September 2016, the OPEC reached an agreement to cut crude oil production by around 700,000 bbl/d, to a range of 32.5 - 33 mbl/d (current production estimated at 33.224 mbl/d). Russia's oil production stood at 10.9 mbl/d in January 2016 and at 11.1 mb/d in September 2016.
However, applying the Russian decision may prove difficult, as major oil producer Rosneft, which accounts for 40% of the country's crude oil output, has rejected any cap on oil production and reiterated plans to raise its production above 2015 levels (203 Mt or 4.1 mbl/d). According to the group, any joint action of OPEC and non-OPEC members would raise oil prices above US$50-60/bbl, enabling the United States to resume production growth from high-cost shale deposits.
Other Russian companies such as Lukoil, Surgut, Gazprom Neft or Tatneft, planned to raise production by around 1.6% on average in 2017 and may be reluctant to any production cap. Lukoil, the second largest crude oil producer in Russia, announced that Russian oil companies would unify behind their government in case of an OPEC deal.