Russia's crude oil production declined to an average of 9.009 million barrels per day in May, reaching the lowest level in the past year. This figure was about 690,000 barrels below the country's OPEC+ production target.
The decline coincided with a period when Ukraine intensified attacks on Russian energy infrastructure. At least 31 attacks on oil facilities in Russia were reported throughout May.
Six-Month Production Decline
According to OPEC's monthly report, Russian production also decreased compared to April, marking the sixth consecutive month of decline in the country's oil output.
Production has dropped by approximately 370,000 barrels since the peak of 9.38 million barrels reached in November. The May data clearly fell short of Russia's OPEC+ agreement target.
Increasing Pressure on Energy Infrastructure
Ukraine's attacks targeted refineries, oil export terminals, and pipelines. These attacks aimed to strain Russia's energy revenues, which are critical for financing the war.
Energy and gas revenues have accounted for roughly one-quarter to one-third of Russia's federal budget revenues in recent years. Therefore, the production decline is closely monitored in terms of Moscow's budget balance.
Weak Trend Continues into Early June
In June, Russia's crude oil processing rates reportedly fell to the lowest levels in two years, indicating that the production decline was not limited to May alone.
Data shows that the war's impact on the energy front is being felt simultaneously across production, processing, and shipment channels.