Russian oil output down sixth month, Ukrainian drone attacks

Russia's oil production has declined for a sixth consecutive month, with Ukrainian drone attacks on energy infrastructure contributing to the downturn by disrupting storage and transportation facilities. According to data published by OPEC, Russian crude and condensate production fell to 9.009 million barrels per day in May, down from a recent peak of 9.38 million bpd last November. This decline leaves Russia producing approximately 690,000 bpd below its OPEC quota.

The production drop coincides with a sharp escalation in Ukrainian strikes on Russian oil infrastructure. At least 31 attacks were recorded in May against refineries, export terminals, and pipelines, the highest monthly total since the war began. Major facilities targeted included the Lukoil-owned NORSI refinery, Rosneft's Ryazan refinery, and the Surgutneftegas-owned Kirishi refinery. These strikes have caused Russian refinery throughput to fall to its lowest level since 2009, with processing volumes declining further in early June to a two-decade low.

The collapse in domestic refining has paradoxically freed up more crude oil for export, particularly after Russia restored operations at Baltic and Black Sea ports...