Drone Attacks on Oil Facilities Deepen Crisis in Russian Energy Sector and May Trigger Oil Price Reductions and Faster Depletion of the Aggressor Country’s Budget.
Against the backdrop of expanding drone attacks on oil facilities, Russian diesel exports have noticeably decreased, according to a report from Bloomberg. The publication reports that oil processing rates at Russian plants are at an 11-month low. During the period up to April 13, average deliveries were around 0.74 million barrels per day, 25% lower than the averages for the corresponding period from 2019 to 2023.
Analysts note that this decline is one of the most pronounced in recent years and could further exacerbate the energy crisis in the region. Specifically, increased demand for oil products in Europe and Asia, driven by rising energy prices, is putting significant pressure on the economies of producer countries, but at the same time, Russia will be forced to sell crude oil that it cannot process or reduce its production, something Russia has never agreed to, which will obviously result in an oversupply on global markets.
Experts warn that further deterioration of the situation could lead to even greater losses for Russian exports and a decrease in the value of oil in the global market. Currently, Russian specialists are exploring possible ways to improve the security of oil facilities and minimize risks, all of which contribute to reducing the profitability of the Russian oil sector.
The destruction of refineries in Russia elicits various reactions worldwide, from condemnation and fears of destabilizing global energy markets to approval and support, as Russia is still considered a massive gas station, and hits to its energy sector are very painful for its economy, as it produces almost nothing else but raw materials for export.