Russia cuts oil exports: Could world oil prices rise?
A plan to cut crude oil exports from Russia's western ports by 6% in September risks tightening supplies, pushing up world oil prices.
Russia is expected to cut crude oil exports from its ports of Primorsk, Ust-Luga and Novorossiisk to 1.9 million barrels per day (bpd) in September, down from 2.0 million bpd in August, two industry sources said. Reuters calculations show the drop represents about 6% month-on-month.
The move comes as domestic refinery operations ramp up. Maintenance at some refineries is expected to be completed in late August and early September, leading to higher domestic demand for raw materials and reducing the amount of oil available for export.
However, the plan could be adjusted. Sources said external factors such as drone attacks on refineries and energy infrastructure, or delays in maintenance, could affect Russia’s crude oil export plans for September.
The September cuts are in stark contrast to the move in August. Russia sharply increased its export program last month after several refineries were damaged by attacks, freeing up excess crude for overseas sales. Exports and transit shipments from Russia’s western ports in August were 200,000 barrels per day higher than provisionally planned.
Russia's idle refining capacity may have fallen to around 5.5 million tonnes in September, from a record 6.4 million tonnes in August, according to Reuters calculations based on industry data.
