Russia cuts oil exports: World oil prices may 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 the ports of Primorsk, Ust-Luga and Novorossiisk to 1.9 million barrels per day (bpd) in September, from 2.0 million bpd in August, according to two industry sources. Reuters calculations show the decline is equivalent to about 6% from the previous 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 a sharp contrast to the move in August. Russia sharply increased its export program last month after attacks damaged several refineries, freeing up excess crude for overseas sales. Exports and transit shipments from Russia’s western ports in August were 200,000 barrels a 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.
