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, while the manufacturing sectors, accounting for over half of overall industrial output actually bounced back from the April lows along with the easing in the nation-wide lockdown,” they said. Russia agreed to implement some of the largest cuts in the extended oil cartel in April, reducing output from a baseline of 11 million […]