Russia's Weekly Oil Exports Drop Due to Port Maintenance

Maintenance work at key ports causes a significant decline in Russia's crude oil exports.

Jun 25, 2024 - 09:13
Jun 25, 2024 - 09:13
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Russia's Weekly Oil Exports Drop Due to Port Maintenance
Russia's Weekly Oil Exports Drop Due to Port Maintenance

Russia faced a notable decline in its weekly crude oil exports recently, the largest in over three months. This drop was mainly due to maintenance activities at crucial ports like Primorsk on the Baltic Sea and Kozmino on the Pacific coast. These maintenance works halted operations, leading to no departures from these ports for four consecutive days during the week. However, exports are expected to recover in the upcoming week as these ports have now resumed operations.

At the same time, Russia's oil transport vessels are facing increased scrutiny and sanctions from Western authorities. The European Union, for instance, has imposed sanctions on 17 vessels involved in transporting Russian crude oil, including Sovcomflot PJSC, a state-controlled shipping company.

Despite a week-on-week increase in oil prices, particularly for shipments from western ports, the overall value of Russia's crude oil exports fell by 14% compared to the previous week. This decline reflects the ongoing challenges Russia faces amid sanctions imposed after its actions in Ukraine.

Looking ahead, Russia's crude oil exports are expected to stabilize as operational disruptions at key ports are resolved. This situation will likely impact global oil market dynamics in the coming weeks.

Also Read: Oil Prices Edge Up After Recent Decline, Influenced by Market Sentiment

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