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Ukraine attacks pose a threat to Russian oil exports

April 17, 2024

Russia's crude oil exports face a major challenge; Whereas, despite its increase in March by 200 thousand barrels on a monthly basis, there are fears that this percentage will decrease due to the Ukrainian attacks on Russian refineries.

The Ukrainian attacks on Russian oil refineries are considered one of the most important factors affecting global energy markets, but the size of this impact depends on many factors, including Russia’s ability to export more crude oil, developments in relations with Ukraine, and the course of international sanctions.

These attacks – along with other factors – led to a significant rise in global oil prices, in addition to creating uncertainty about Russia's ability to export crude oil. Which leads to oil-consuming countries looking for alternatives from other sources. Which may affect the market shares of Russia.

Although Russia has multiple oil ports, its ability to export additional crude oil is limited. It is estimated that Russian ports are theoretically capable of handling approximately 930,000 barrels per day of additional crude oil, but logistical factors such as bad weather conditions and port maintenance significantly reduce this capacity.

Some major Russian ports are linked to specific pipelines and specific oil fields. Which limits its ability to divert crude oil away from affected refineries. Therefore, its ability to export will decrease.