Russia's oil output falls to lowest in a year amid drone attacks

Russia’s crude output declined to the lowest in a year in May as Ukraine launched an unprecedented string of attacks on the nation’s oil infrastructure.

Russian producers pumped an average of 9.009 million barrels a day of crude in May, according to a monthly report published by the Organisation of the Petroleum Exporting Countries on Thursday (June 11). That’s below April’s level, which was revised slightly lower, OPEC data based on secondary sources showed.

The May figure is 690,000 barrels a day below Russia’s required level for the month under an agreement with OPEC and its allies. The data doesn’t include the output of condensate.

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Russian crude output has been declining since late last year, and while the latest drop marks a slowdown compared with previous months, it’s likely to add pressure to oil markets where prices remain high due to the ongoing Middle East conflict.

Russia is one of the world’s top-three crude producers, and its barrels don’t have to pass through the Strait of Hormuz, which has effectively been closed since the start of the Iran war.

Ukraine significantly ramped up attacks on Russia’s oil infrastructure in May, with at least 31 attacks on the nation’s refineries, sea export terminals and pipeline infrastructure. That’s the highest monthly level since the Kremlin’s full-scale invasion of Ukraine, with Kyiv aiming to curb Moscow’s earnings from rallying oil prices.

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As Ukrainian forces mostly targeted fuel-producing facilities last month, Russia’s crude-processing rates have fallen to their lowest in two decades so far in June, according to estimates by EA Analytics, part of industry consultant Energy Aspects Ltd.

That’s prompted Russian producers to redirect crude to export markets. Four-week average seaborne crude shipments rose to 3.64 million barrels a day in the period through May 31, tanker-tracking data compiled by Bloomberg show. That compares with an average of 3.17 million barrels a day in the four weeks through April 17, when Kyiv targeted export facilities.