Russian President Vladimir Putin has given the oil market a boost – by announcing Russia is prepared to freeze its output. OPEC countries have been pushing for the move for years.

CCTV’s Elena Casas reports the story.Follow Elena Casas on Twitter @ElenacMontanez

Russia is the world’s largest oil exporter and this month, the Energy Minister reported the country is pumping crude at the highest levels seen since the end of the Soviet era – 11.2 million barrels a day, but Vladimir Putin has surprised the market – by agreeing to limit oil output for now.

“Global overproduction of energy resources will inevitably lead to shortages and new unpredictable jumps in prices. And eventually that will hurt both producers and consumers. That’s why in the current situation we think an oil output freeze or even production cuts are likely to be the only right decision to maintain the stability of the global energy sector,” Putin said.

This statistic shows the oil production in Russia from 1998 to 2015, in million metric tons. In 1998, the oil production in Russia amounted to 304.3 million metric tons. The petroleum industry in Russia is a significant part of the global industry. Russia is the largest exporter of natural gas and is one of the largest oil producers in the world.

Graph provided by Statista

In an interview with Bloomberg News from Istanbul, OPEC’s Secretary General Mohammed Barkindo said, “We are confident of Russia’s commitments. Although, it is too early to assign countries individual output targets, momentum is on our side.”

Barkindo added he was optimistic that non-members of the organization will help reduce output.

OPEC has been pushing Russia, a non -OPEC member, to freeze production for years – while Moscow insisted any such move was technically impossible.

Some analysts said the change of heart is down to cash – the collapse in the oil price has left a hole in the government’s budget.

OPEC countries have welcomed Russia’s pledge – hoping it will finally allow them to end the global glut of oil.

Russia announces to freeze oil production

To discuss the recent cuts made to global oil production and future outlooks, CCTV America’s Mike Walter interviewed Carl Larry, director of Oil and Gas for Frost and Sullivan.