July Russian Oil Exports From Western Ports Fall Amidst Black Sea Attacks

Russia’s oil exports from western ports are set to fall in July as repeated Ukrainian attacks in the Black Sea disrupt loadings at Novorossiysk, three sources said, citing shipping and trading data.

Exports of Urals, KEBCO and Siberian Light crude from Russia’s Baltic ports of Primorsk and Ust-Luga and the Black Sea port of Novorossiysk are expected to total about 2.6 million barrels per day this month, down about 4% from June, according to the sources and Reuters calculations.

Russia has sought to keep exports from its western ports near record levels as it struggles to maintain crude output while refinery runs remain affected by repeated Ukrainian drone attacks on oil facilities. But attacks on export infrastructure and shipping have also disrupted flows.

Ukraine stepped up attacks on tankers in the Black Sea this month, damaging several vessels and forcing the suspension of loadings at Novorossiysk and the Caspian Pipeline Consortium (CPC) terminal.

The CPC terminal resumed loadings earlier this week but suspended them again on Thursday after reporting a new attack on two tankers.

Oil loadings at Novorossiysk’s Sheskharis terminal continued on Thursday, traders said.

The heightened security risk in the Black Sea has prompted many shipowners to avoid the region, making it increasingly difficult to secure vessels and delaying cargoes, traders said.

“We have to change vessels daily as most shipowners refuse to visit Russia’s Black Sea ports, cargoes get delayed”, one trader involved in Russian oil sales said.

Some Russian refineries are returning from maintenance, which could reduce crude exports further in August as more oil is processed domestically. However, recent Ukrainian drone attacks on several refineries may limit that effect, traders said.

(Reuters)