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Investing.com -- Russia’s Ust-Luga oil export terminal will run at approximately 350,000 barrels per day in September, about half its normal capacity, following damage to pipeline infrastructure caused by Ukrainian drone attacks.
The reduced capacity demonstrates how recent Ukrainian strikes on key energy facilities are affecting Russian exports and could potentially cause supply disruptions, according to Reuters. citing industry sources.
The issues at Ust-Luga stem from drone strikes on the Unecha pumping station in Russia’s Bryansk region earlier in August. Unecha serves as a critical transit point for crude oil destined for the Ust-Luga terminal.
These attacks also disrupted flows through the Druzhba pipeline, which supplies oil to Belarus, Slovakia, and Hungary. On Thursday, Slovakia reported that initial supplies via the pipeline had resumed in test mode.
While the specific damaged pipeline was not identified, sources confirmed to Reuters that repair work is currently in progress, though there is no clear timeline for when full operations might be restored.
To minimize export losses, oil volumes from Ust-Luga will be redirected to Russia’s Primorsk and Novorossiisk ports, the sources said.
West Texas Intermediate Crude Oil is down 1% to $63.54/barrel, while Brent Oil is down 0.7% to $66.95/barrel as of 11:45 ET amid the news.
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