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Sources say that Russian oil exports are expected to increase after drone strikes have shut down refineries.

Two industry sources say that Russia will increase its exports to two million barrels of oil per day from its western ports in August. This is about 200,000 barrels more than the previous estimate. The reason for this is because two refineries have cut back on their production following drone attacks by Ukraine.

The additional oil could add downward pressure on the global oil markets, as OPEC+ and its allies including Russia have already agreed to increase their output.

Following the drone attacks late on Saturday, several crude distillation unit at Rosneft's refineries in Ryazan, and Novokuibyshevsk, were shut down. The sources estimated that repairs would take about one month. The sources spoke under condition of anonymity as they were not authorized to speak to the media.

Rosneft has not responded to requests for comment.

Sources and calculations indicated that the increase in the previous planned 1.77 million BPD will require adding up to 10 Aframax tanks, each of which can carry between 80,000 to 100,000 metric tons, to the loading schedule.

The US is also pressuring India, which is the largest buyer of Russian oil, including Urals, and seaborne oil, to reduce purchases.

In recent weeks, Indian refiners have reduced their Russian oil purchases while increasing the purchase of alternative grades.

Steve Witkoff, the U.S. ambassador to Russia, arrived in Moscow Wednesday morning in order to press for a deal on peace in Ukraine before a deadline set forth by U.S. president Donald Trump. Trump has threatened sanctions against Ukraine if an agreement cannot be reached.

Ryazan will process 262,000 barrels per day in 2024. This is nearly 5% the total Russian refining output. Novokuibyshevsk produced 115,000 bpd by 2024. Barbara Lewis (Reporting and editing)

(source: Reuters)