Ukraine's attacks on Russian oil refineries and Black Sea ports are disrupting fuel supplies and reducing the country's ability to send crude overseas, Bloomberg reported, citing tanker-movement data.

Overseas crude flows fell to 3.46 million barrels per day in the four weeks through Aug. 23, according to tanker-movement data compiled by Bloomberg. Drone strikes on oil tankers have cut shipments from the Black Sea, one of Russia's main export routes for crude and refined products.

Russia is responding by redirecting Kazakh crude to the Black Sea port of Novorossiysk, the country's main oil terminal on that sea, a move intended to free capacity for its own oil at the Baltic port of Ust-Luga, one of Russia's largest crude-shipping hubs, which is considered less vulnerable to Ukrainian attacks. Kazakhstan, which is landlocked, moves most of its crude to world markets through pipelines and terminals on Russian territory, making it dependent on such transit arrangements.

Strikes on Russian processing plants have also pushed crude-processing rates lower and contributed to domestic gasoline shortages. Separately, Moscow has restricted overseas shipments of gasoline, diesel, and jet fuel, reducing refined-product exports; Russia has turned to such curbs before, including a ban on diesel and gasoline exports imposed in 2023 to shore up domestic supply.

The attacks form part of Ukraine's broader campaign of long-range drone strikes against Russian energy infrastructure, which began escalating after Russia launched its full-scale invasion of Ukraine in February 2022. Russia is one of the world's largest producers and exporters of crude oil and petroleum products, including diesel, a fuel it ships to markets worldwide, and energy sales are a major source of revenue for the Russian state. Tanker-tracking flows and weekly crude-processing figures remain the main gauges for measuring how the redistribution between Black Sea and Baltic routes proceeds.

Source: CryptoBriefing