Oil Crisis: Sanctions and Drone Attacks Force Russia to Reduce Production.

In the coming months, Russia may reduce oil production due to US sanctions and drone attacks from Ukraine. The restrictions imposed by the US on Russian tankers hinder Russia's ability to supply oil to Asia. At the same Time, Ukrainian drone attacks are paralyzing refineries.

According to Reuters, in January the US restricted 180 Russian tankers, while Ukraine intensified its attacks on oil refining facilities. Oil company executives and traders are calling for Russia to cut oil production due to these circumstances.

Experts note that due to the reduction in exports and excessive refining in Russia, there is a surplus of crude oil. This problem can only be resolved through a reduction in production, as Russia has limited storage capacity. Furthermore, Ukraine has successfully attacked some refineries with drones in recent weeks.

Executives predict that the oil production cuts may begin modestly, but over time Russia's output could fall below 9 million barrels per day if sanctions and issues with tankers and refineries continue.

Already now, a decline in crude oil exports from Russian ports Primorsk, Ust-Luga, and Novorossiysk can be observed. Volumes in these ports in January were 17% lower compared to the same period last year.