Kazakhstan's Oil Output Plummets After Russian Terminal Attack

Kazakhstan's oil production has plummeted by more than half after a key terminal in Russia was attacked, exacerbating global oil supply jitters.

The Caspian Pipeline Consortium (CPC) pipeline, which accounts for over 80% of Kazakhstan's oil exports, was forced to suspend operations due to the drone attacks at the Novorossiysk terminal on the Black Sea coast.

Kazakhstan's energy ministry said that loading operations had resumed, but the output cuts are expected to be severe. Oil and gas condensate production in Kazakhstan has fallen from 2.16 million barrels per day (bpd) in June to around one million bpd on Sunday, a decline of over 50%.

The CPC pipeline runs for over 1,500 kilometers from the Tengiz oilfield in western Kazakhstan to the port of Novorossiysk, where it is loaded onto tankers bound for international markets.