Russia Cuts Oil Output Forecast to 17-Year Low Amid Ukraine War
Russia has revised its oil output forecast for this year and next, citing the ongoing war with Ukraine as a major factor. According to a government draft forecast seen by Reuters, crude oil production is expected to decline by 17.2 million metric tons this year to 494.2 million tons or 9.88 million barrels per day, its lowest since 2009.
The European Union's ban on Russian oil and fuel imports has significantly impacted the country's revenue. Additionally, Ukrainian drone attacks on Russia's oil refineries have reduced fuel production, leading to gasoline shortages across the country.
The draft forecast also projects that crude oil exports will increase this year but decline in 2027 and 2028-2029. To address domestic market shortages, Russia has introduced a ban on diesel exports and restrictions on overseas sales of gasoline and jet fuel.