Ukraine Drone Attacks Slash Russian Oil Output

Russia's oil production took a significant hit in April due to Ukrainian drone attacks on ports and refineries, as well as a halt to crude supplies via the Druzhba pipeline to Europe. According to five sources and Reuters calculations, Russia may have cut production by about 300,000 to 400,000 barrels per day in April.

The attacks, which targeted Russia's biggest Western oil ports, triggered vast blazes and damaged critical infrastructure. The loss of revenue from reduced output could be substantial for Russia's $3 trillion economy, as oil is the lifeblood of its energy sector.

The potential losses may be cushioned by the ongoing Iran war, which has triggered a supply and production crisis for the global oil market. In fact, Russia's Finance Minister Anton Siluanov said last Thursday that high prices would help reduce the budget deficit.