Reuters: Russia will reduce oil shipments from Western ports

Oil shipments from Russian ports in the west of the country may decrease by 100,000-200,000 barrels per day (b/d) in August.

The reason may be the promise to reduce exports by 500 thousand b/d, writes enkorr with reference to Reuters. According to the publication’s sources, last week officials involved in the oil and gas industry held a meeting with top managers of Russian oil companies, at which they were asked to reduce oil exports in August.

According to sources, the export of oil from the ports of Primorsk, Ust-Luga and Novorossiysk in August will decrease by 510% compared to July.

In June, Russia undertook to cut oil production — its formal quota will be reduced by 650,000 b/d to 9.8 million b/d, and a voluntary reduction of 500,000 b/d will also be maintained. In July, Russian Deputy Prime Minister Oleksandr Novak announced that Russia would voluntarily reduce oil exports by 500,000 bpd in August.

According to the International Energy Agency, in June the export of oil and oil products from Russia decreased by 600 thousand b/d by May to 7.3 million. This is the lowest figure since March 2021. Estimated export revenue almost halved year-over-year to $11.8 billion.