Russian energy minister: output of both will decline.

Russia projects a decline in its oil and gas output this year compared to 2022, partly due to the announced production cut in response to Western sanctions. Energy Minister Nikolai Shulginov said that for 2023 he expected "oil production levels to be slightly lower, because of the voluntary reduction in output." Gas production volumes will continue to decline, both due to the abandonment of the European market and the timing of the rerouting of energy flows to the East. Russia's decision to reduce its oil production this month will help balance the global oil market, which is in a surplus now. Oil production in Russia rose to 535.1 million tons last year from 524.5 million tons in 2021, while gas production dropped to 674 billion cubic meters (bcm) in 2022 compared to 763 bcm in the previous year. In January, Russia's oil exports surged to an all-time high despite the Western embargo on Moscow's seaborne crude. Other major oil producers like Saudi Arabia and Algeria have warned that Western sanctions such as the price cap on Russian oil will spark uncertainty and disrupt global trade flows.