Russia Starts Oil Production Cuts as Part of Vienna Agreement

Russia has begun cutting oil output within the framework of last year's agreement among major producers to limit supply and bolster global prices, a source familiar with the course of the agreement told RIA Novosti on Tuesday.

MOSCOW (Sputnik) — Russia agreed to cut 300,000 barrels a day as part of the November 30 deal reached in Vienna setting the global oil production ceiling at 32.5 million barrels per day.

"We began the reduction," the source said, clarifying that the rate so far exceeds the target 50,000 barrels per day for January.

The Vienna agreement came into force on January 1 and is expected to last six months, after which it could be rolled over for another six months depending on the state of the oil market.