Reuters reports that Russia was forced to reduce oil production by about 300,000-400,000 barrels per day in April. This is the sharpest monthly decline recorded since the COVID-19 pandemic.
The main reasons for the decline in production are continuous drone strikes on major Russian ports and oil refineries, as well as the interruption of supplies through the last pipeline to Europe, the Druzhba pipeline.
Ukrainian drones regularly target the main export hubs of the Baltic and Black Seas (Ust-Luga, Primorsk, Novorossiysk), which creates serious problems for the transportation of fuel.
The International Energy Agency has already revised its supply forecasts for Russia, noting that, due to infrastructure damage, Moscow will find it difficult to restore previous volumes in the near future.
However, high oil prices (caused by the military situation around Iran) may partially mitigate Russia’s budget losses.
