Russia's western oil exports to rise 4% in August on refinery disruptions

Moscow: Oil shipments from Russia's western ports are ​set to increase ​4% in August from July as drone attacks ​on domestic refineries make more crude available for exports, while strong demand in Asia encourages sellers to load more, two traders said.

Exports ‌from the ⁠Baltic ⁠ports of Primorsk and Ust-Luga, along with the Black Sea ​port of Novorossiysk, are set to reach around 2.7 million barrels per ​day in August, according to the preliminary data collected by traders.

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Ukraine's attacks on Russia's refineries have meant ​that less oil can be processed and ⁠has to ‌be exported.

Loadings from the ports are ​set ​to be near capacity, though ongoing strikes and ⁠a lack of tonnage available for such shipments ​may cap the export volumes, the traders ​said. Russia's oil exports from western ports declined in July to 2.6 million bpd as repeated Ukrainian attacks in the Black Sea disrupted loadings at Novorossiysk.

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High demand for Russian oil in Asia amid ongoing ‌unrest in the Middle East, which has disrupted supplies via the Strait of Hormuz, is keeping prices ​for Russia's ​flagship Urals crude firm.

Urals ⁠crude differentials for delivery to India in late August and September have firmed to minus $2 to $3 per barrel to Brent ​at delivery, Reuters reported.

Chinese refiners have also turned back to Russian oil due to Middle East supply disruptions. Two major Chinese refiners snapped up most of Russian ESPO Blend for September-loading cargoes at narrower discounts.