Russia's oil production plunges amid Ukrainian drone strikes
Oil production in Russia has become problematic due to the threat (photo: Getty Images)
Russia cut its crude oil production to 8.718 million barrels per day in August. This was 160,000 barrels below the revised average for July and marked the largest monthly decline since December, when oil production began to fall, according to the monthly report of the Organization of the Petroleum Exporting Countries (OPEC), which cited secondary sources.
Russia's August production was 1.17 million barrels per day below the volume set for that month under the agreement with its OPEC+ partners.
What is happening to Russia's oil industry
According to Bloomberg, the decline in production comes amid intensified Ukrainian strikes on Russian oil refineries and crude oil export infrastructure.
The media outlet notes that in August, Ukrainian forces attacked oil refineries in Russia at least 22 times. The damage forced the facilities to reduce oil processing.
At the same time, strikes on oil infrastructure and ports prevented Russia's largest oil companies from simply redirecting excess crude for export.
In particular, in August, Ukraine attacked vessels and infrastructure at Russia's southern ports. Among them was Novorossiysk, one of the key hubs for Russian oil exports via the Black Sea.
Due to problems in the fuel sector, the Russian government extended a ban on most diesel exports until the end of September. At the same time, gasoline sales have again been rationed in some Russian regions.
Russian authorities already expect the country's oil production for the year to be lower than previously forecast. The reason cited is a reduction in crude oil processing volumes.
At the same time, Russian Deputy Prime Minister Alexander Novak said the decline in production is temporary. According to him, production volumes are expected to rise again once oil refineries resume operations and the situation stabilizes.
