Russian Oil Refining Volumes May Drop to Multi-Year Low in August

Russian oil refineries may reduce processing volumes to 4 million barrels per day in August, according to an analysis by Kpler. If confirmed, this figure would mark a new multi-year low, following a brief increase to 4.2 million barrels per day in July. The decline is attributed to unplanned equipment repairs and production downtime. A drop to 4 million barrels per day represents a nearly 5% decrease from July and a 2.5% decline compared to June, when processing stood at 4.1 million barrels per day—a previous multi-year minimum. Production Thresholds and Supply Risks Industry sources estimate actual August refining volumes between 3.8 million and 4.1 million barrels per day. While projections suggest a recovery to 4-4.3 million barrels per day in September, returning to previous levels of 5.3-5.5 million barrels per day by 2026 is considered unlikely.