Russian court closes oil exports from Kazakhstan for 30 days

A Russian court has ordered the Caspian Pipeline Consortium (CPC), one of the world's largest pipelines carrying oil from Kazakhstan to the Black Sea, to suspend operations for 30 days, increasing global concerns about supplies. of oil. Without this pipeline, Kazakhstan cannot practically export crude oil.

The CPC, which manages about 1% of the world's oil and which includes US majors Chevron and Exxon, said the decision to suspend operations concerned oil spill management issues and that the consortium had to comply with the judgment. The company declined to release further comments on its business and operations.

The CPC pipeline is in the spotlight after what Russia calls a "special military operation" in Ukraine, which has limited Russian exports and led to a surge in oil prices.

Kazakhstan oil arrived, barring technical problems, on Western markets without any limitations, as it was not affected by sanctions. The Kazakhs, for marketing purposes, had even created their own crude oil “Brand”, KEBCO; precisely to differentiate it from Russian oil, called REBCO, and to be able to sell it more easily.

According to a report viewed by Reuters, oil cargoes from the CPC terminal were continuing at noon on July 5, but it was unclear whether operations would continue on July 6 as well. The cut would have certain effects on the market price, because it would not be a small reduction and would come at a time when the market is frightened, amidst problems of increasing production and signs of a strong recession on the way.

Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.

⇒ Register now


The article Russian court closes oil exports from Kazakhstan for 30 days comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Wed, 06 Jul 2022 10:38:41 +0000.