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Data from traders and LSEG show that oil exports from Russia’s western ports rose in the first half of May despite drone strikes.

According to data from traders and LSEG, the increase in oil exports and transit through Russia's western port ports was around?150,000 barrels per daily (bpd), a?9% rise, compared with April.

The ongoing drone attacks on Russian refineries force Moscow to increase crude oil exports. However, traders warn that the spare capacity of the Transneft system is close to its limit.

Estimates show that between May 1-15, the average exports and transit volumes of Urals and KEBCO, as well as Siberian Light, via Primorsk and Ust-Luga, were?about 2,35-2.4 million barrels per day. This is up from 2.2?million barrels per day in April.

Exports are expected to remain high in May, according to market participants. This is assuming that there are no new disruptions at ports or pipelines.

One industry source said, "There's still spare crude in?the?system. Companies want to ship it, and demand is strong."

Novorossiisk was the main driver of the increase in early May?loadings. It handled cargoes carried over from April, totaling around 1,000,000 metric tons during the first 10 days. The first half of the month saw a rise in loadings to 0.7 million bpd, up from 0.5 million in April.

After a drone attack last month, the port temporarily halted loading tankers. Traders reported that loading rates had slowed down after operations were resumed.

Primorsk kept shipments at a little over 1.1m bpd while loadings in?UstLuga remained?at 0.6m bpd.

According to official data and social media reports, drone attacks on Russia's infrastructure for energy have increased. The number of "refineries" targeted has doubled since the beginning of the year.

Urals crude is still in high demand in Asia due to the limited shipping through the Strait of Hormuz, which has been linked to the conflict in Iran. The premiums for Indian crude oil have dropped to $2 to $3 per barrel, compared to Brent. This is down from $6 to $7 in May-loading cargoes. However, Russian crude remains at a high price. (Reporting and Editing by Diti pujara)

(source: Reuters)