Sheskharis oil terminal halts loadings after drone attack

Crude oil export operations at the Sheskharis terminal in the Black Sea port of Novorossiysk have been suspended following a significant drone attack and subsequent fire. The facility, located in Russia, serves as a critical outlet for the region's energy exports, typically loading approximately 700,000 barrels per day. This disruption follows a similar suspension at the Baltic port of Ust-Luga last week, which was also targeted by drone strikes. The repeated hits on infrastructure are increasing the logistical burden on the nation's export capabilities. Industry sources indicate that the port has not yet provided a full estimate of the damage. The terminal is responsible for loading various grades, including Russian Urals, Siberian Light, and KEBCO oil from Kazakhstan. The suspension comes at a time when global demand for alternatives to Middle Eastern supplies is rising, particularly as regional tensions involving Iran continue to influence the market. While the specific price impact on Brent Crude Oil remains a focal point for traders, the immediate concern for producers is the accumulation of supply. Sources familiar with the situation suggest that output cuts may be inevitable as storage reaches capacity. > Russia will be forced to cut its output as supplies build up and storage fills, when international demand for alternatives to Middle Eastern crude is high and it could be maximising the benefit to its economy of a surge in oil prices caused by the Iran war. This marks the second major disruption at the Novorossiysk port in recent weeks, following an attack in early March that halted loadings for five days.