Russia will be forced to cut oil production - Reuters

Russia will be forced to cut oil production in the coming months as US sanctions impede its access to tankers for transportation to Asia and Ukrainian drone attacks damage its refineries. This is stated in the material of Reuters, according to UNN.

Details

The publication reminds that last month the US imposed sanctions on 180 Russian tankers, while Kyiv stepped up drone attacks to improve its negotiating position amid expectations that Donald Trump will press Russian leader Vladimir Putin to end the war in Ukraine.

According to three unnamed executives of Russian oil companies, the reality is clear: Russia will have no choice but to slow down oil production. In particular, Russia is experiencing a growing surplus of crude oil due to falling exports and reduced refining production. At the same time, Russia lacks storage facilities, and in recent weeks, Ukraine has attacked some of these facilities with drones.

"The decline in production may start small when Russia's output falls below 9 million barrels a day in the coming months, but could accelerate if tanker shortages and refining disruptions continue," the article says.

The authors note that there are already signs of a weakening in crude oil exports from Russia. Thus, according to traders, the volume of transportation from the western ports of Primorsk, Ust-Luga and Novorossiysk in January fell by 17% compared to last year. At the same time, Russia no longer officially publishes data on its exports.

Addendum

As a reminder, the General Staff of the Armed Forces of Ukraine reported that the Saratov Oil Refinery was hit on the night of February 11. A fire broke out at the facility, which produces fuel for the Russian army.

Earlier, the General Staff of the Armed Forces of Ukraine confirmed that the Volgograd Oil Refinery and Astrakhan Gas Processing Plant were hit on the night of February 3. Damage and fires were reported at both facilities.