CPC Blend oil prices collapsed due to drone attacks in the Black Sea

The price of Caspian CPC Blend crude oil has shown a sharp decline this week. The main factors for the price reduction were drone attacks on tankers in the Black Sea and logistical delays caused by adverse weather conditions. This was reported by Reuters, writes UNN. 

Details

The American corporation ExxonMobil, which is a shareholder of the Caspian Pipeline Consortium (CPC), was forced to significantly increase the discount on its products. On Thursday, the company offered a batch of 120,000 tons at a discount of $1.35 per barrel compared to the benchmark Brent price.

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This is a significant drop compared to the previous day, when the discount was only 40 cents. Despite the attractive price, no buyer came forward, and the offer was subsequently withdrawn.

Risks to exports and Kazakhstan's reaction

The situation escalated after at least two oil tankers, one of which was chartered by Chevron, were hit by unidentified drones on Tuesday. Due to the threat to shipping safety, Kazakhstan has already called on the US and Europe to help protect export routes. CPC Blend is a critically important raw material for many European refineries, but due to increasing risks and probable additional costs, demand for this crude oil grade currently remains low. 

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