In August, Russia produced an average of 8.718 million barrels of crude oil per day — 160,000 barrels less than in July, according to Bloomberg. This is the sharpest monthly decline since December. The agency attributes the decline to intensified Ukrainian attacks on oil refineries, port infrastructure and vessels, which have restricted refining and hampered exports.
Briefly about the main points
- Production in the Russian Federation in August stood at 8.718 million barrels per day.
- Over the course of a month, the figure fell by 160,000 barrels a day.
- Ukrainian forces have attacked oil refineries, ports and ships on at least 22 occasions.
- S&P Global estimates that seaborne crude oil exports fell by 12%.
- Russia has extended restrictions on diesel exports amid a fuel shortage.
The sharpest fall in production since December
The August decline marked the sharpest monthly fall in Russian oil production since December. The Russian authorities are already expecting production figures to be lower by the end of the year. Deputy Prime Minister of the Russian Federation Alexander Novak described the cutbacks as temporary and linked any possible resumption to the completion of repairs at the oil refinery.
Against the backdrop of fuel shortages The Russian government has extended the ban on exports of most types of diesel until the end of September. In some regions, petrol sales quotas have been reintroduced.
Attacks on processing facilities and ports have hampered exports
Ukrainian forces have attacked Russian oil refineries, port infrastructure and vessels in the Black and Baltic Seas on at least 22 occasions. Following the strikes, the facilities reduced their processing capacity, and their ability to divert crude oil to external markets became more limited.
According to S&P Global Commodities at Sea, seaborne exports of Russian crude oil in August totalled 3.837 million barrels per day, down 12% on July. At the same time, trends varied across routes: shipments via the Black Sea fell, whilst those via the Baltic Sea rose slightly.
