Russia‘s crude oil production declined in August, falling further behind the levels agreed upon by OPEC+ as Ukraine intensified its strikes on the country’s energy facilities. According to the monthly report from the Organization of the Petroleum Exporting Countries (OPEC), which relies on secondary sources, Russia produced an average of 8.718 million barrels per day.
This figure is 160,000 barrels per day lower than the revised average for July and marks the largest monthly drop since production cuts began in December. Daily output in August was also 1.17 million barrels below the level assigned to Russia for the month under its agreement with OPEC+ partners.
Impact of attacks on oil infrastructure
The data points to significant pressure on Russia‘s oil industry after Kyiv ramped up strikes on refineries and export infrastructure near the Black Sea and Baltic Sea. The attacks forced fuel producers to cut crude processing while preventing major oil companies from diverting some raw materials for export.
Based on public statements from both sides, Bloomberg estimates that Ukrainian forces attacked oil refineries at least 22 times in August. This forced the Russian government to extend its ban on most diesel exports through September, while some regions have reintroduced restrictions on gasoline sales.
Last month, Kyiv also struck vessels and infrastructure in southern Russia, including Novorossiysk, a key Black Sea oil export hub.
The Russian government already expects domestic oil production to fall short of previous forecasts this year due to reduced refining volumes.
Meanwhile, Deputy Prime Minister Alexander Novak said last week that the production drop is temporary. He added that output will rise once refineries are repaired and the situation stabilizes.
Source: Bloomberg
