Key insights
- Russian oil production fell in April due to Ukrainian drone strikes on energy infrastructure. While crude exports rose, overall oil product exports declined significantly. This could lead to tighter global oil supply, potentially increasing energy prices and contributing to inflationary pressures, which may have a slightly positive impact on US energy equities.
Investing.com -- Russia’s crude oil production fell by 460,000 barrels per day in April compared to the same month last year, reaching more than 8.8 million barrels per day, according to data released by the International Energy Agency on Wednesday.
The decline comes as Ukraine has intensified drone strikes targeting Russian energy infrastructure. Since March, Ukrainian forces have conducted waves of drone attacks on Russia’s largest Western oil ports, causing significant fires, while also striking refineries in an attempt to weaken Russia’s war economy.
The IEA reported that Russia’s oil product exports decreased by 340,000 barrels per day in April from March levels, falling to 2.2 million barrels per day. This marks the lowest level recorded by the Paris-based agency.
Meanwhile, Russia’s crude exports rose by 250,000 barrels per day last month, reaching 4.9 million barrels per day in April, up from March figures.
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