Russia's Oil Production Misses OPEC+ Quota Amid Ukrainian Attacks

Russia's crude oil production fell short of its OPEC+ quota by nearly one million barrels per day in July, according to data from the Organization of the Petroleum Exporting Countries. Producers pumped an average of 8.887 million barrels a day of crude last month, compared to Russia's target level of 9.824 million barrels for the month under its agreement with OPEC+ allies.

The shortfall was due in part to Ukrainian attacks on Russian oil infrastructure, which have been ongoing almost daily. In July, Kyiv targeted various assets, including refineries and tankers, forcing Russian producers to export near-record amounts of seaborne crude as their plants reduced processing rates to multiyear lows.

Ukrainian attacks on refineries in the first half of July led to a significant decrease in processing rates, but when Kyiv shifted its focus to attacking tankers in the second half of the month, refineries were able to repair and boost processing rates. However, this brief respite was short-lived as Ukraine has already attacked nine out of 34 large refineries so far this month.

The ongoing conflict is putting pressure on global energy markets, which are already under strain due to the Middle East conflict. The impact of these attacks will likely be felt in the coming months as Russia's oil industry struggles to recover.