Oil prices surge as Russia says it will slash crude production by 5% next month

• Russia will slash its oil production by 5% starting next month, a top Russian official said on Friday.
• Oil prices surged shortly after the announcement, with Brent crude rising 2.5%.
• Russia is following through on earlier threats to retaliate against Western sanctions.

Oil prices surged on Friday as Russia announced it would slash its crude production by 5% next month, following through on earlier threats to retaliate against Western sanctions.

"We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling," Russia's deputy prime minister, Alexander Novak, said in a statement on Friday. "In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations."