Russia was forced to cut oil production in April due to Ukrainian drone attacks on ports and refineries, as well as the suspension of supplies through the last operating Russian oil pipeline to Europe, Reuters reported, citing its sources.
According to them, the decline could reach between 300,000 and 400,000 barrels per day compared to the average levels in the first months of the year. This would be the sharpest monthly decline in Russian production in the last six years since the COVID pandemic.
Oil, mainly extracted in the West Siberian Basin, is key to the Russian economy, worth about $3 trillion. The decline in production is limiting the revenues of the world's second-largest oil exporter.
At the same time, higher crude prices, supported by the war with Iran and tensions on the global market, could partially offset the losses. Russian Finance Minister Anton Siluanov said last Thursday that high prices would help curb the budget deficit.
"Against the backdrop of ongoing attacks on Russian ports and refineries, it will be difficult to sell oil without reducing production, especially with the upcoming spring maintenance outages," one of the sources told the agency, speaking on condition of anonymity due to the sensitivity of the situation.
Russia classified oil production data shortly after the start of the war in Ukraine in 2022. The Russian Energy Ministry declined to comment.
In recent weeks, Ukrainian drones have repeatedly attacked the Baltic ports of Ust-Luga and Primorsk, as well as Novorossiysk on the Black Sea - major export points for Russian oil. Refineries have also been hit, and the port of Vysotsk was attacked over the weekend.
In addition, supplies via the "Druzhba" pipeline to Hungary and Slovakia through Ukrainian territory remain suspended following attacks on infrastructure in late January.
The International Energy Agency has cut its forecast for Russian supplies by 120,000 barrels per day for the rest of the year, warning that Moscow may face difficulties in increasing output in the near future.