Ongoing Storm Halts Oil Loadings at Black Sea Ports Prompting Exporters to Seek Alternatives

Exportation of oil has come to a halt at the Black Sea's Novorossiysk port and the Caspian Pipeline Consortium (CPC) terminal, as inclement weather disrupts operations. A storm has rendered the coastal facilities inoperable, causing delays for the significant daily oil output from Russia and Kazakhstan, which amounts to roughly 2 million barrels per day (bpd).

Challenging Weather Conditions

According to a local source, a weather advisory remains in place due to heavy rain and waves that reach heights of between 2 to 4 meters. These conditions have led to over 1 million metric tons of oil from November's export plans still awaiting shipment.

Exporters Scramble for Solutions

Oil producers from Russia and Kazakhstan have been forced to consider alternative export paths, such as the Baltic ports in Russia. However, finding substitute routes is proving difficult due to the already high levels of demand at these ports.

Exporters are also contemplating reductions in supply to Novorossiysk for December, anticipating continued logistic issues and postponed cargo loadings. This foresight hints at slower exports in the upcoming month. Additionally, there's the possibility of diverting some flows through the Druzhba oil pipeline, which serves several European countries.

Oil redirection not only faces the challenge of quickly finding alternatives but also must comply with quarterly export schedules and the capacity of demand, particularly in the case of European refineries.

Kazakhstan has bolstered its oil delivery to Germany, with an increase scheduled for the closing months of the year, while Russian oil makes its way to the Czech Republic, Slovakia, and Hungary — countries that were granted exemptions from the EU's embargo on Russian oil.

oil, exports, storm