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Russia raises August oil export plan after drone strikes disrupt refineries, sources say

Three people with knowledge of the situation said that Russia revised its crude oil export plans from western ports in August by 200,000 barrels a day (bpd). This was due to the fact that Ukrainian drone attacks disrupted the refinery operations, allowing more crude to be shipped.

Due to the ongoing strikes and changing repair schedules, delays and volume revisions may be expected, they stated.

"The attacks are continuing and the repair deadlines vary daily." One person stated that it's not clear how much Russia will be able to load in the next month or this month.

The Russian Energy Ministry and Transneft, the monopoly of Russia's oil pipelines, did not respond immediately to comments. The disruptions occur at a moment when Moscow is trying to increase revenues despite Western sanctions, and U.S. pressure to key buyers of Russian oil to reduce their imports.

The sources stated that the loadings from Primorsk and Novorossiisk, as well as Ust-Luga, are expected to increase from 1.8 million barrels per days (bpd) initially planned, up to about 2 million bpd.

Calculations show that the adjustment is a result of attacks on 10 Russian refineries in this month which caused the closure of facilities equivalent to at least 17% or 1.1m bpd national processing capacity.

Ukraine targeted Druzhba and Unecha pumps in Bryansk, which are key routes for crude oil deliveries to Ust-Luga. This further limited Russia's ability to export.

According to one source, damage to the Druzhba Pipeline and Ust-Luga Route could result in a reduction of exports up to 500,000 BPD. The availability of vessels at the end August is also limited, which limits Russia's capacity to increase shipments.

As most refineries are located in central Russia, the western port loadings of Russian oil are adjusted according to refinery throughput. Eastern exports remain largely unaffected.

(source: Reuters)