Daily Oil Exports From Russia's Western Ports Will Drop 8% in August

Russia's daily oil exports from its western ports are set to be around 1.77 million barrels per day (bpd) in August, down from 1.93 million bpd in July's plan, amid the expected rise in refinery runs, Reuters calculations based on data from two sources show.

On a daily basis oil loadings from Russia's Primorsk, Novorossiisk and Ust-Luga including Urals, Kazakh KEBCO and Siberian Light oil grades will decline some 8% in August from the current month.

Russia's offline primary oil refining capacity is set to drop in August from July to some 3.74 million metric tons (some 27.4 million barrels) from some 4 million tons this month, according to Reuters calculations based on data from industry sources. The data is provisional and will be updated after the end of the month.

Higher refinery runs in August mean Russian oil companies have less crude oil for export.

Last week the European Union agreed an 18th package of sanctions against Russia over the conflict in Ukraine, including measures aimed at dealing further blows to the Russian oil and energy industry, including a moving price cap on Russian crude.

Yet Russia has so far managed to sell most of its oil - the lifeblood of its state finances - above the previous price cap as the current mechanism makes it unclear who must police its implementation.

Russian government and trading sources played down the impact of new restrictions on trade in Russian crude.

(Reuters)