Drone attacks halt Kazakhstan’s oil exports via the Black Sea

Kazakhstan has temporarily halted oil shipments across the Black Sea after drone attacks on Russian tankers. The Caspian Pipeline Consortium (CPC) terminal near Novorossiysk has halted operations due to the threat of further strikes.

Bloomberg writes about this.

According to the agency, shipping companies are not yet ready to send their tankers to the area where the attacks have occurred in recent days. That is why the terminal is temporarily not accepting oil.

If work cannot be resumed soon, Kazakhstan will have to reduce production. This could affect not only the country but also the global oil market, as reduced supplies usually lead to higher prices.

Approximately 80% of all Kazakh oil exports pass through the CPC system, and it is used by major international companies, including Chevron, ExxonMobil, and Shell.

Bloomberg notes that Kazakhstan is one of the key suppliers of oil to Europe. If the pause in exports drags on, European refineries will have to look for additional sources of raw materials.

At the same time, the oil transported through the terminal near Novorossiysk is not subject to Western sanctions, although the facility itself is located on Russian territory. Ukraine has not officially claimed responsibility for the drone attacks.