Ukraine strikes disrupt Russian oil flows as processing tumbles

Ukraine’s attacks on Russian oil refineries and Black Sea ports are disrupting fuel supplies and reducing the country’s ability to send crude overseas, Bloomberg reported.

Overseas crude flows fell to 3.46 million barrels a day in the four weeks through Aug. 23, according to tanker-movement data compiled by Bloomberg. Drone strikes on oil tankers have cut shipments from the Black Sea.

Russia is redirecting Kazakh crude to the Black Sea port of Novorossiysk to free capacity for its own oil at the Baltic port of Ust-Luga, which is considered less vulnerable to Ukrainian attacks.

Strikes on Russian processing plants have also pushed crude-processing rates lower and contributed to domestic gasoline shortages. Moscow has separately restricted overseas shipments of gasoline, diesel, and jet fuel, reducing refined-product exports.

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