Russia’s Spare Refining Capacity Can Mitigate Drone Attacks

Ukraine’s drones have hit facilities accounting for more than a 10th of Russia’s oil-refining capacity, but the actual reduction in crude processing may be just half that size because the country’s downstream industry can utilize existing slack in the system.

Russia’s primary crude-processing volumes are expected to decline by 300,000 to 400,000 barrels a day as a result of the latest flurry of Ukrainian drone attacks, to an average of 5 million to 5.2 million barrels a day, according to analysts surveyed by Bloomberg.