Russian oil production cuts loom after Ukrainian attacks

Russia is on the verge of cutting oil production after Ukrainian attacks on its port infrastructure, pipelines, and refineries reduced its export capacity by about one million barrels per day, or roughly one-fifth of the total, Reuters reported on April 2, citing three industry sources. A production cut by Russia, the world's second-largest oil exporter, could significantly tighten global supply amid unprecedented disruptions from the conflict in the Middle East. Over the past month, Ukraine has intensified its attacks on Russian oil export infrastructure, targeting the Baltic Sea ports of Ust-Luga and Primorsk. According to the sources, at least 20% of Russia's total export capacity remains offline. While this is down from a peak of 40% in March, it is still substantial enough to affect the output of the world's third-largest oil producer. The major Baltic port of Ust-Luga halted oil exports a week ago. With pipelines full and storage space rapidly diminishing, some oil fields are now being forced to reduce production to prevent system overload.