CPC Pipeline Halted Again Amid Ongoing Black Sea Disruptions

The Caspian Pipeline Consortium (CPC) has halted operations for the third time in a month after Ukrainian drone strikes hit two tankers loading at the Russian port of Novorossiysk. One of the strikes caused a fire aboard one of the vessels, according to Reuters.

This is not an isolated incident, as CPC Blend crude is already under pressure due to ongoing disruptions in the Black Sea and Middle East regions. The pipeline's restart was short-lived, lasting only a few days before this latest shutdown.

The impact on global oil flows is significant, with Kazakhstan's oil and gas condensate production falling by 1 million barrels per day. This represents about 50% of the country's average output in June. The CPC transports more than 80% of Kazakhstan's crude exports to international markets.