IEA: Ukrainian attacks cause Russian oil production to fall 10% below target for May

The International Energy Agency (IEA), which is a part of the United Nations, said that Ukraine's attacks on Russia's energy infrastructure caused its crude oil production to drop by around 5% on an annual basis last month. This was 10% below May’s target. Ukraine has doubled its attacks on oil refineries since 2026 in an attempt to 'hit' a major source for Russia's war fund. This has led to a complete or partial shutdown of oil processing.

The Paris-based IEA reported that "due to?continued strikes on oil infrastructure we have reduced the Russian crude?prediction?this?year by 200,000 bpd, to 8.95m bpd," noting that Ukraine has started to target remote production areas using longer-range 'drones. This month, Russia acknowledged that its?oil production was down in this?year. It blamed unplanned maintenance. In April 2023 the world's third largest oil producer ceased publishing data about oil production, less than a year after it began its war with Ukraine.

The IEA reported that Russian crude oil and product exports remained at?around 7,4 million bpd, little changed year-over-year despite attacks.

The total oil export revenue fell $710 million from one month to the next, reaching $20.8 billion in May. This was still 65% more than a year ago, and close to all-time records, according to the report.

The IEA stated that the attacks forced Moscow to 'prioritise the supply of oil products to the domestic -market and maximise the crude oil exports. These increased by 490,000. bpd on an annual basis to 5.2,000,000 bpd - returning to levels from 2022. Market sources reported earlier this month that Russia was'set' to reduce its crude oil exports in order to increase refinery runs by June, amid looming fuel shortages. (Reporting by Alessandra Prentice; Editing by Kirsten Donovan)

(source: Reuters)