OPEC+ Cuts Are Weighing On Russia’s Economy

Industrial output in Russia fell last month, largely as a result of the crude oil production cuts that Russian oil companies had to implement following the April agreement by OPEC+ to remove a combined 9.7 million bpd from the global market. ING analysts reported that the May drop in industrial output stood at 9.6 percent, of which 5 percentage points were attributed to the oil production cuts. “We do not take May's 9.6% YoY drop of industrial production as too negative, as around 5.0 pp out of it was related to the cut in commodity extraction,…