Russia’s crude shipments have slumped in recent weeks due to a halt at a major export terminal. The Primorsk loading site, located in the Baltic Sea, has been shut down for maintenance. As a result, there has been a sharp drop in seaborne flows. Aggregate shipments of Russian crude fell to 2.55 million barrels a day in the seven days to June 25, compared to 3.53 million barrels a day the previous week.
The halt at Primorsk is expected to last until July 10. Once it resumes operations, it is likely that Russian crude shipments will rebound. However, the overall trend of declining exports is likely to continue. This is due to Western sanctions continuing to bite and Russia’s oil industry struggling to adapt to the new reality.
In addition to the halt at Primorsk, there are other factors that are contributing to the decline in Russian crude exports. These include:
- The loss of European markets, as many countries have banned or restricted imports of Russian oil.
- The rise of alternative suppliers, such as Saudi Arabia and the United Arab Emirates.
- The decline in global demand for oil, as the world economy slows.
All of these factors are likely to keep a lid on Russian crude exports for the foreseeable future. This could have a significant impact on the global oil market, as Russia is a major producer and exporter of crude oil. It could also lead to higher oil prices, which could have a knock-on effect on inflation and economic growth.
