Russia's Biggest Black Sea Oil Port Goes Quiet as Drone Threat Grows
Russia's Biggest Black Sea Oil Port Goes Quiet as Drone Threat Grows What I Cover Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and… Russia's largest Black Sea oil export terminal has effectively gone offline just days after drone attacks shut down the neighboring Caspian Pipeline Consortium terminal, tightening another artery that moves crude onto the global market.
The Sheskharis terminal at Novorossiysk hasn’t loaded a crude tanker since July 21, according to Bloomberg.
Sheskharis exported an average of about 650,000 barrels per day during the first half of the year.
Losing those barrels, even temporarily, comes on top of the disruption at CPC, which normally handles more than 80% of Kazakhstan's crude exports and roughly 2% of global oil supply.
The two terminals sit only a few miles apart.
Together they form one of the most important oil export hubs on the Black Sea.
The disruption is already showing up upstream.
Kazakhstan cut oil production this week after CPC suspended tanker loadings, with output at Chevron's giant Tengiz field reportedly falling by more than half as storage filled and producers were forced to reduce pipeline flows.
If Sheskharis remains idle, another major export outlet disappears from an already stressed market.
Ukraine has expanded drone attacks beyond refineries and storage facilities to commercial shipping and export infrastructure in the Black Sea and Sea of Azov.
Russia has responded by warning vessels operating in its Black Sea economic zone that navigation is no longer considered safe because of the threat from air and sea drones.
The market is running out of places to absorb supply disruptions.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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