Kazakhstan Halts Black Sea Oil Exports and Cuts Output After Drone Attacks

The Caspian Pipeline Consortium (CPC) suspended oil loadings at the Novorossiysk terminal on Russia's Black Sea coast after Ukrainian drones struck two tankers around 19 to 20 July (28 to 29 Tir). According to sources, five tankers were targeted near the terminal during July.

The route carries roughly 80 to 90 percent of Kazakhstan's oil exports and more than 1 percent of global oil supply. Kazakhstan cut its crude output following the attacks and activated alternative routes, including the Baku-Tbilisi-Ceyhan pipeline, to absorb part of the disruption, while urging Ukraine to stop the strikes. The Kremlin said the attacks were aimed at destabilizing the global oil market. Coming on top of the Strait of Hormuz crisis, the disruption adds to supply pressure on the world oil market and thus on prices that feed through to Iran's markets.