Putin considering reducing oil production

(Patria) - Russia, the world's largest energy exporter, could reduce oil production. This was announced by Russian President Vladimir Putin in response to the West's move to cap the price of Russian crude oil at $60 per barrel. Putin also announced that he would refuse to sell oil to any country that imposes a 'stupid' Western price cap on Russian oil.

“As for our reaction, I have already said that we simply will not sell to those countries that make such decisions,” Putin told reporters in the capital of Kyrgyzstan, Bishkek.

“We will consider, perhaps, even a possible, if necessary... reduction in production. We are thinking about this, there is no decision yet. And specific steps will be outlined in a decree by the President of Russia, which will be published in the coming days,” Putin said.

Putin dismissed the West's attempt to put pressure on Russian finances, saying that the $60 cap corresponds to the price at which Russia was selling oil.

“It all comes down to this figure,” Putin said. “So don't worry about the budget.”

The Kremlin chief believes that Western attempts to impose a price cap would lead to the collapse of the oil industry, and subsequently to a catastrophic rise in prices worldwide, agencies report.

“This will lead to the collapse of the industry itself, because the consumer will always insist that the price be lower. The industry is already underfunded, and if we only listen to consumers, then this investment will be reduced to zero,” Putin said.

“All this will at some stage lead to a catastrophic price surge and the collapse of the global energy sector. This is a stupid proposal, poorly conceived and poorly thought out,” Putin concluded.