Russia's Oil Industry Is Running Out of Room to Absorb More Shocks

Following a year of tighter sanctions and Ukrainian attacks on refineries, ports and tankers, Russia’s crude output has fallen further in the second half of 2026, severely affecting the nation’s crude production outlook. Factoring in these disruptions, Rystad Energy has revised its Russian crude pro

Source: OilPrice.com

DW NOTE

Russia spent eighteen months rerouting oil to Asia, building a shadow tanker fleet, and pricing crude in renminbi to dodge sanctions. That bought time — not immunity. With Hormuz closed, Brent at $88, and Ukrainian drones hitting refineries weekly, the cushion is gone. The next shock won't be absorbed; it'll force a choice between production cuts or selling at steeper discounts to the only buyers left.

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