MOSCOW : Russia is expected to increase seaborne oil exports from its western ports this month to a four-year high to meet Asian demand for low-priced oil, two sources familiar with the loading plans from the ports said.
Oil exports from Russia's main western outlets, Primorsk, Ust-Luga and Novorossiisk, will reach a combined 2.42 million barrels per day this month, slightly up from 2.38 million bpd last month, according to Reuters calculations based on data provided by the sources. Oil loadings from Primorsk and Ust-Luga will reach 7.5 million tonnes, including Urals and Kazakhstan's transit sold as KEBCO oil grade, up from 7.2 million tonnes in April.Under the cap, Russian barrels sold below $60 per barrel on an FOB basis, which does not include freight and insurance, in the port of loading can be shipped and insured by Western companies, while volumes sold above the cap are banned from the services.
Russian refineries are expected to increase run rates in June as they emerge from maintenance and volumes of crude available for export are likely to decrease.