Russia's oil output is plummeting after constant attacks. Are global markets prepared for the supply shock?
As drone strikes push Russia's oil industry toward collapse, is its war economy now on borrowed time?
Ukrainian Drone Campaign Drives Russian Oil Exports to Record Highs but Revenues Plummet in 2026
Overview
As of July 2026, Russia's oil industry is under severe pressure due to sustained Ukrainian drone strikes on its energy infrastructure and a global drop in oil prices. These attacks have caused major disruptions to Russia's refining capacity, leading to widespread domestic fuel shortages and long queues at filling stations, with security forces deployed to maintain order. While Russia's crude oil exports have reached record highs, the inability to refine crude oil at home threatens both domestic supply and global markets for gasoline and diesel. The combined effects of drone strikes and falling prices have created a deep crisis for Russia's oil sector.