Russian order slashes Kazakh oil export capacity amid OPEC+ row

Reuters - 01/04
Russia has ordered the Black Sea terminal handling Kazakhstan's oil exports pumped by U.S. majors Chevron and Exxon Mobil to close two of its three moorings amid a standoff between Kazakhstan and OPEC+ over excess production.
  • Two of three export moorings shut
  • Move could cut CPC exports by over 50%, traders say
  • Kazakhstan's oil output exceeds its OPEC+ quota
  • Kazakhstan will need to cut output if outage lasts days -source
  • CPC repair may take more than a month -source
MOSCOW, April 1 (Reuters) - Russia has ordered the Black Sea terminal handling Kazakhstan's oil exports pumped by U.S. majors Chevron (CVX.N), opens new tab and Exxon Mobil (XOM.N), opens new tab to close two of its three moorings amid a standoff between Kazakhstan and OPEC+ over excess production.
The operator of the Caspian Pipeline Consortium (CPC), which exports around 1% of global oil supply via the Russian terminal, said late on Monday that the two moorings were halted following snap inspections by Russia's transport watchdog.

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The stoppage could more than halve CPC exports if it lasts for longer than a week, trading sources told Reuters.
The Russian order to CPC came just hours after U.S. President Donald Trump said he was unhappy with Russia and the rate of progress in peace talks with Ukraine and threatened to impose secondary tariffs on buyers of Russian oil.
Kazakhstan has frequently exceeded its production quotas under a pact among OPEC+ producers, which includes the Organization of the Petroleum Exporting Countries and allies, such as Russia.
However, it is finding it difficult to convince the companies operating its largest oilfields to reduce output where they have spent tens of billions of dollars to expand capacity.
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