Russia warns of declining sharp Caspian pipeline oil exports after a storm

According to Russian officials, oil exports from Russia and Kazakhstan through the Caspian Pipeline Consortium (CPC) from the Black Sea are up to 1 million barrels (bpd) per day, or bpd, due to the storm-damaged Bath. It could reduce world oil production by 1%. on Tuesday.

Energy Deputy Minister Pavel Sorokin said the second berth could also be damaged after the first information that one of the three berths was damaged by the storm.

According to Sorokin, maintenance can take up to two months, resulting in a reduction in exports of up to 1 million barrels / day.

A storm in the Russian section of the Black Sea damaged the loading equipment of CPC, one of the world’s largest oil pipelines that transport crude oil from Kazakhstan to the world market, the operator said Tuesday.

Since Russia’s invasion of Ukraine, the CPC pipeline has been in the limelight, limiting Russia’s exports and leading to higher oil prices. The United States has imposed sanctions on Russia’s oil, but said the flow from Kazakhstan to Russia should be uninterrupted.

The pipeline ships about 1.2 million barrels per day, or 1.2% of global demand. The turmoil in the flow will put additional strain on the global oil market, which has faced one of the worst supply crises since the Arab oil embargo in the 1970s.

Most of the oil in the pipeline belongs to international oil majors such as Russia, Kazakhstan, and Chevron. We export oil from the port of Novorossiysk in the Black Sea of ​​Russia.

A Chevron spokeswoman said the company “is currently assessing the situation.”

CPC pipeline operators initially stated that one of the three mooring points was damaged by the storm and would take at least three weeks to repair while waiting for the vessel. He said he hopes exports will not be affected as the other two berths can continue to operate normally.

“The abnormal weather has damaged the CPC facility …. (the second berth) is also at risk of damage,” he said in a video posted by the Ministry of Energy.

Major global trading companies such as Bitre and Trafigura said on Tuesday that they estimated the current Russian oil turmoil at 2 to 3 million barrels per day. They said the world could barely cope with the turmoil of over 2 million barrels per day, as it would lead to further price spikes and recessions.

Russia said Western sanctions against Ukraine corresponded to an economic war against Ukraine. Officials said Moscow would probably rely on all the tools available to protect itself, including limiting gas supplies to Europe.

The US Treasury on Friday told buyers to be careful if they think the certificate stating that crude oil from CPC is not of Russian origin has been tampered with.