Russia has sharply reduced oil production after facing growing difficulties delivering crude to its key customers, India and China, according to Bloomberg on January 9.
In December, Russian oil companies were forced to significantly cut output due to sanctions imposed by the administration of US President Donald Trump, which disrupted sales to the Kremlin’s largest buyers, Bloomberg reported, citing a source familiar with official data. Russia classified its oil production statistics in 2022.
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Last month, Russia’s oil output fell by more than 100,000 barrels per day to 9.326 million barrels per day, according to the source. The decline marked the steepest drop since mid-2024, when Russia was complying with OPEC+ production quotas.
Under its current agreement with oil-producing nations, Russia is now permitted to increase output. However, instead of ramping up production, December output unexpectedly fell and remains about 250,000 barrels per day below its quota.
Selling the extracted oil has become increasingly difficult. While tankers continue to ship around 4 million barrels per day from Russian ports, a growing volume of crude is remaining at sea awaiting discharge. Since late November, the amount of unsold Russian oil has risen by roughly 30 million barrels.
Bloomberg also notes that Ukrainian strikes on Lukoil oil fields in the Caspian Sea may have contributed to the production decline.
Earlier, it was reported that oil tankers linked to Venezuela’s sanctions-busting “shadow fleet” are scrambling across the Atlantic in an apparent bid to evade US naval forces, with several vessels attempting to shield themselves by re-registering under the Russian flag, according to The New York Times on January 8.
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