Russia's Oil Output Plunges Amid Ukraine Conflict

Russia's oil production fell sharply in August due to Ukrainian attacks on energy infrastructure. According to OPEC's monthly report, Russia's crude output averaged 8.718 million barrels per day (bpd) in August, down from a revised July figure of 8.878 million bpd. This marks the biggest month-to-month fall since December.

The decline was partly due to Ukrainian strikes on refineries and crude export routes. The attacks forced refiners to cut throughput and left major oil firms unable to channel crude to export flows. In August, Ukraine struck Russian refineries at least 22 times.

Russia's national oil output is now expected to come in below an earlier forecast due to weaker crude processing. Deputy Prime Minister Alexander Novak said the drop should be short-lived as refineries return and conditions settle.