Oil Exports From Russia's Western Ports Hits Record High in June

Oil shipments from Russia's western ports hit a record high in June and are expected to maintain that level in July as ongoing drone attacks on domestic refineries force Moscow to boost crude exports, three trade and industry sources said on Thursday.

Exports from the Baltic ports of Primorsk and Ust-Luga, along with the Black Sea port of Novorossiysk reached nearly 3 million barrels per day in June, according to the sources' data.

Loadings from the ports will remain close to 3 million bpd this month, the sources said, adding that shipments are limited by the sea ports' capacity and could be revised due to weather conditions or other factors.

"July will likely be same as June. Preliminary export plans are being revised up several times because of drone strikes, lots of uncertainty," a source with a major oil company said.

With Ukrainian drone attacks damaging Russian refining capacity, Russia has had to export more crude oil to avoid cutting output.

May exports via the western ports rose to 2.5 million bpd from 2.2 million bpd in April.

Record oil exports are weighing on prices for Russia's flagship Urals crude. Urals crude differentials for delivery to India in August have fallen to their lowest levels since late February due to ample supply and rising competition, Reuters reported.

Russian oil production has fallen since the start of the year, Deputy Prime Minister Alexander Novak said in June, blaming the decline on unplanned maintenance at refineries.

The Ukrainian attacks will continue to create heightened uncertainty for oil market participants, the sources said.

The strikes have created a fuel shortage in Russia and pushed what is usually one of the world's major fuel exporters to seek gasoline imports from abroad.

Fuel shortages are being felt across Russia's 11 time zones with rationing, long queues at filling stations and a record increase in gasoline prices.

Kazakhstan has agreed to supply 50,000 metric tons of gasoline to Russia in July and August as humanitarian aid, four industry sources said on Wednesday.

(Reuters)