Russia said it would cut its roughly 10 million b/d oil production by 5% in retribution of Western sanctions amid the Kremlin’s nearly year-long war in Ukraine.

Oil Supplies

The decision follows steps by Russia in 2022 to slash the bulk of natural gas exported via pipeline to the European Union (EU) – moves that hastened calls across the continent for U.S. supplies of LNG to fill the void. Europe had depended on Russian exports prior to the war. In the months leading up to winter, U.S. shipments of liquefied natural gas reached record levels to meet robust European demand. Exports have leveled off but remain elevated this year.

“We are fully selling the entire volume of oil produced; however, as previously stated, we will not sell oil to those who directly or indirectly adhere to the...