Russia Threatens to Cut Oil Output in Response to Western Sanctions

MOSCOW—Moscow threatened to cut oil output in response to Western price caps, setting the stage for an escalation of the energy war that has run parallel to the conflict in Ukraine. 

Speaking on state television on Friday, Russian Deputy Prime Minister Alexander Novak detailed for the first time Moscow’s possible response to the Western price caps, instituted earlier this month. Mr. Novak said Russia could reduce its production by 500,000 to 700,000 barrels a day—which he described as a 5% to 7% reduction in capacity—by early next year.