Russia produced almost 1 million barrels per day less crude oil in July than its OPEC+ quota allowed, with average output at 8.887 million barrels per day versus a monthly target of 9.824 million barrels. The shortfall came even as OPEC+ had been gradually unwinding supply cuts and approved a collective output increase of 188,000 barrels per day effective August. Near-daily Ukrainian drone strikes on Russian oil infrastructure were tied to the decline, damaging facilities owned by Gazprom Neft, Rosneft and Lukoil, including the Gazprom Neft Moscow Refinery and the Omsk refinery, previously Russia’s largest. Russian refinery throughput fell to a 24-year low in July, the weakest level since 2002, while oil product export loadings dropped 23% month-on-month as refining capacity and logistics were disrupted at terminals including Novorossiysk and Tuapse on the Black Sea. The disruption also pressured Russian fossil fuel export revenues, while broader energy markets were already facing strain from conflict in the Middle East.