Why the Ukrainian attack on Novorossiysk may have consequences for the international oil trade
The attack by Ukrainian marine drones on the Russian port of Novorossiysk came as a bit of a surprise, as they hit a port not in the Crimea, but in mainland Russia. The video was spread widely in the media
This attack may have non-secondary consequences on international trade, especially on oil. Novorossiysk, an oil-exporting and naval port in Russia on the Black Sea, east of Crimea, exports about 600,000 barrels per day (bpd) of oil and is also the main export outlet for most of Kazakhstan's crude.
Operations at the oil terminal were briefly suspended in the morning local time.
The Caspian Pipeline Consortium (CPC), whose Kazakhstan oil pipeline terminates at the port and which operates a terminal in Novorossiysk, said there was a temporary ban on vessel movement in the CPC district and the port, but the ban has already been lifted. The tanker loads continued and the infrastructure operated by the consortium was not damaged, CPC added. Therefore, paradoxically, the Ukrainian attack risks hitting a country that was getting considerably closer to Western positions, namely Kazakhstan, which is a supplier of gas and oil to Europe.
The attack outside the port of Novorossiysk was the first such attack on Russian oil export infrastructure since the start of the Russian invasion of Ukraine in February 2022.
The attack comes after Russia targeted Ukraine's Black Sea port of Odessa, causing damage and fires at facilities crucial to Ukraine's grain exports.
“Anything that risks reducing the supply of Russian oil to the market will not be welcomed by the White House,” Helima Croft, a former CIA analyst and currently head of global commodity strategy at RBC Capital Markets, told FT.
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The article Why the Ukrainian attack on Novorossiysk may have consequences on the international oil trade comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/perche-lattacco-ucraino-a-novorossiysk-puo-avere-delle-conseguenze-sul-commercio-internazionale-di-petrolio/ on Fri, 04 Aug 2023 15:54:36 +0000.