Russia's Oil Crisis: Drone Strikes, Sanctions, and a Wounded Pipeline Giant

Russia's oil pipeline monopoly, Transneft, has cautioned producers about potential production cuts. This warning follows Ukrainian drone strikes on essential export ports and refineries, according to three industry sources on Tuesday. Transneft labeled such reports as 'fake' and 'information war' tactics from the West.

Ukraine has intensified its attacks on Russian energy assets since August, targeting Moscow's war capabilities and revenue. Oil and gas revenues, crucial to Russia's budget, have been hit with drone attacks reducing refining capacity and damaging key Baltic Sea ports.

Amid pressure from Western sanctions and drone assaults, Russia faces challenges in maintaining its oil output. Limited storage capabilities and continued attacks strain production. Despite setbacks, Russia continues navigating global oil market dynamics, rerouting exports to Asia, primarily China and India.

(With inputs from agencies.)