Russia's Oil Output to Plummet to 17-Year Low Amid Ukraine Conflict

Russia's oil production is expected to hit a 17-year low this year due to the ongoing conflict with Ukraine. According to a government draft forecast seen by Reuters, crude oil output will decline by 17.2 million metric tons this year to 494.2 million tons or 9.88 million barrels per day.

The reduction is attributed to the European Union's ban on most Russian oil and fuel imports since February 2022, as well as intensifying Ukrainian drone attacks on Russia's oil refineries in recent months. These attacks have led to gasoline shortages across the country.

Russia's crude production is expected to recover to 500 million tons next year but still remain below previous forecast levels. The government has also acknowledged that unplanned maintenance at refineries has contributed to the decline in oil production.