Russian Refineries Hit 24-Year Low Amid Intensified Ukrainian Drone Strikes

Russia’s July refinery throughput fell to about 3.6 million barrels per day, the lowest since May 2002, as Ukrainian drone strikes on refineries, tankers and energy infrastructure disrupted operations—roughly one-third below the seasonal norm. Eighteen refineries were attacked in July, with around 30 oil-asset attacks for the month and a temporary suspension of CPC tanker loading. While Russia can redirect some crude to Baltic ports, limited pipeline, storage and tanker capacity may prevent full compensation for the disruption. The outlook depends on Ukraine’s drone availability and targets, particularly given the potential constraints on rerouting volumes.