Russia’s oil exports plummet to historic low amid Ukrainian drone strikes, Reuters reports
About 40% of Russia’s oil export capacity has been halted amid Ukrainian drone strikes, pipeline damage, and tanker seizures, Reuters reported on March 25.
The outages have disrupted shipments from major Baltic and Black Sea ports.
The disruption comes as global energy markets are already under strain due to the U.S.-Israeli war with Iran, which has pushed oil prices above $100 per barrel.
“This is the most serious disruption to oil supplies in Russia's modern history – the world's second-largest oil exporter – and it has hit Moscow just as oil prices have exceeded $100 a barrel due to the war with Iran,” Reuters reported.
Loadings at Primorsk and Ust-Luga, Russia’s two largest Baltic oil ports, were suspended again after recent attacks caused fires and damage to infrastructure, while the Black Sea port of Novorossiysk is operating below schedule following earlier strikes this month.
Russia’s pipeline exports to Hungary and Slovakia via the Druzhba pipeline have also been largely halted since January, due to damage sustained in Ukraine following a Russian attack.
As a result of the strikes and pipeline disruptions, roughly 2 million barrels per day — about 40% of Russia’s oil export capacity — is currently out of operation, Reuters reported.
Oil production is one of the main sources of revenue for Russia’s state budget and helps fund the war against Ukraine.
Kyiv considers Russian oil refineries and petrochemical facilities to be valid military targets.
