Economy July 10, 2026 07:51 AM

IEA Lowers Russia Oil Output Forecast After Surge in Ukrainian Drone Attacks

Paris-based agency trims supply outlook and highlights shifts in exports as Russia restricts diesel shipments amid domestic shortages

By Ajmal Hussain
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The International Energy Agency has reduced its projection for Russian crude oil production, citing an escalation of Ukrainian drone strikes on energy infrastructure. The IEA now expects output of 8.9 million barrels per day (bpd) this year - a 3% decline - and 8.8 million bpd in 2027, adjusting its forecasts downward by 85,000 bpd for this year and 150,000 bpd for the next. The disruptions have prompted Russian policy responses including a diesel export ban, layered on top of existing limits on gasoline and jet fuel sales abroad.

IEA Lowers Russia Oil Output Forecast After Surge in Ukrainian Drone Attacks
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Key Points

  • IEA cuts Russian oil production forecast by 85,000 bpd for this year and 150,000 bpd for next year, projecting 8.9 million bpd in 2026 and 8.8 million bpd in 2027.
  • Ukraine's intensified drone strikes on refineries, storage and transport infrastructure are cited by the IEA as a key factor behind the lowered outlook; Russia introduced a diesel export ban in response to domestic fuel shortages, on top of existing restrictions on gasoline and jet fuel.
  • June data reported by the IEA show Russian crude production rose by 120,000 bpd from May to 8.86 million bpd, with total crude exports at 5.8 million bpd in June while oil product exports fell to 1.91 million bpd.

The International Energy Agency has revised down its outlook for Russian oil production, saying on Friday that escalating Ukrainian drone attacks on energy infrastructure have led it to project a 3% fall in output to 8.9 million barrels per day this year.

In its updated supply assessment, the Paris-based IEA trimmed its forecast for Russia by 85,000 bpd for the current year and by 150,000 bpd for the following year. Across the agency's forecast window, it now expects Russian production to average 8.8 million bpd.

The agency described a pattern of intensified Ukrainian strikes aimed at energy facilities inside Russia, naming targets such as oil refineries, storage terminals and transport links. Those attacks are intended to disrupt Moscow's war-related operations, according to the IEA's reporting on the incidents.

Under the revised outlook, Russian oil output is seen at 8.9 million bpd for this year and 8.8 million bpd in 2027, down from a previously noted level of 9.2 million bpd in 2025. Russia remains the world's third-largest oil producer.

The IEA linked the operational disruptions to a set of policy moves in Moscow. This week, Russia implemented a ban on diesel exports, adding to pre-existing restrictions on gasoline and jet fuel sales abroad. Those trade curbs are framed by Russian authorities as measures to alleviate domestic fuel shortages.

On production volumes, the IEA reported a month-on-month increase in crude output for June, saying Russian crude production rose by 120,000 bpd from May to reach 8.86 million bpd. The agency also noted that this June output sits some 900,000 bpd below the quota set by the OPEC+ grouping.

Separately, the IEA recorded that Russia's total crude oil exports in June were 5.8 million bpd, a rise of 620,000 bpd from May. By contrast, exports of oil products declined by 230,000 bpd from May to 1.91 million bpd in June.

On the broader state of production, Deputy Prime Minister Alexander Novak said last month that Russian oil output has fallen since the beginning of the year, attributing that reduction to unplanned refinery maintenance. The IEA also highlighted a transparency gap: Russia stopped publishing official oil output data in April 2023, more than a year after the onset of the war in Ukraine.


Context and implications

The IEA's downward revision reflects both direct disruptions from attacks on refining and storage capacity and secondary effects on trade flows, as reflected in changes to crude and product export volumes. For energy markets, these shifts influence supply balances and trade dynamics; for transport and refining sectors, the export curbs and maintenance-driven output declines alter feedstock availability and international deliveries.

The agency's numbers show divergent trends in June: crude exports rose while product exports contracted, underscoring a reorientation of flows as Russia confronts internal fuel pressures and external disruptions.

Risks

  • Continued drone attacks on energy infrastructure could further suppress Russian production and disrupt refining and transport operations - affecting the energy sector and international oil markets.
  • Trade restrictions such as the recently announced diesel export ban and existing limits on gasoline and jet fuel could tighten product availability abroad and alter flows for refiners and traders.
  • Limited transparency following Russia's cessation of official oil output data publication in April 2023 increases uncertainty around precise supply conditions and complicates market assessments.

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