Russia to reach record high oil output in 2017 amid cuts

Russia's oil production will reach a record high of 549 million tons in 2017 despite a planned output reduction, the country's Energy Minister Alexander Novak said Wednesday.

"Oil production in our country grew at a steady pace last year. These forecast figures (549 million tons) are accurate even with the reduction in output. The figures would be even higher if there were no reduction," Novak told Russia media.

According to Novak, the Russian Energy Ministry will maintain its pledge to reduce oil output by 300,000 barrels per day by the end of April.

"We will maintain this level during May-June within the parameters that were agreed upon when the agreement was concluded," Novak said, adding that a daily reduction of 250,000 barrels should be met by mid-April.

To shore up weak oil prices, the Organization of the Petroleum Exporting Countries (OPEC) and 11 non-OPEC producers, including Russia, agreed in November 2016 to trim oil production by a total of 1.8 million barrels per day.

The reduction deal became effective in January and runs until July.