Russian Oil Refineries Suffer Severe Damage from Ukrainian Strikes

Ukrainian drone strikes on Russian oil refineries have severely impacted the country's gasoline production, reducing it by nearly 20% in August compared to the same period last year. This significant reduction is attributed to four major attacks on Russia's ten largest refineries, which supply fuel to densely populated and industrially developed regions.

According to EA Analytics, a division of Energy Aspects Ltd., oil refining volumes in Russia have plummeted to their lowest level in over 20 years. In August, the country refined an average of just over 3.8 million barrels per day, down from 5.3-5.5 million barrels per day earlier this summer.

The attacks on Russian refineries have also affected diesel fuel production, with a decrease of more than 23% in the first three weeks of August compared to the same period last year. However, domestic supplies of diesel fuel fell by only 3%, thanks to Russia's ban on exporting most diesel fuel this summer.

Before the Ukrainian strikes began, Russia was one of the largest exporters of diesel fuel, accounting for about 10% of global supplies. EA Analytics forecasts that refining volumes will rise slightly in September to nearly 4.2 million barrels per day, but warns that there remains a risk of further decline if Ukrainian drone strikes continue.