Oil loadings from Russia’s western ports in July will be 370,000 barrels per day (bpd) below the initial export plan, according to industry sources and Reuters calculations, as the country has tightened supply even before a cut announced for next month.

Russia has pledged to reduce its oil exports by 500,000 bpd in August, while Saudi Arabia has extended its 1 million bpd output cuts, as OPEC+ – the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia – seeks to bolster prices.

The oil export and transit plan for Russia’s Transneft system via the ports of Primorsk, Ust-Luga and Novorossiisk for the third quarter was initially set at 2.23 million barrels per day.

Instead, supplies from these ports in July are around 1.86 million bpd (some 1.57 million metric tonnes below the third quarter target).

Russian oil exports from western ports are set to fall by 100,000-200,000 bpd next month from July levels, two Reuters sources said last Friday, citing export plans.

That would take the cuts from the quarterly plan to around 500,000 bpd, in line with Russia’s pledged reduction.

The schedule for transporting oil through trunk pipelines outside Russia in the third quarter of 2023 will be reduced by about 2.1 million tonnes, which corresponds to the indicated 500,000 bpd reduction in exports for August, Russia’s energy ministry said on Monday.
Source: Reuters (Reporting by Reuters; editing by Barbara Lewis)