Drone Strike Threatens to Slash Kazakhstan Oil Exports by 30%

Kazakhstan's oil exports could see a 30% cut for up to two months due to damage from a Ukrainian drone attack on a key pipeline. The attack coincides with U.S.-Russia talks on the Ukraine war, heightening market tensions and impacting major U.S. oil firms.

Kazakhstan's oil exports face a potential 30% reduction following a Ukrainian drone strike on a major pipeline, according to Russia's state pipeline operator, Transneft. The attack on Monday targeted the Kropotkinskaya station on the Caspian Pipeline Consortium (CPC) system, causing significant damage.

This development coincides with rare U.S.-Russia talks in Riyadh regarding the ongoing Ukraine conflict, creating further uncertainty in global oil markets. The Caspian Pipeline, which transports oil from Kazakhstan to international markets and involves global players like Chevron and Exxon Mobil, is crucial for oil supply chains.

Transneft estimates that repairs could take up to two months, affecting the flow of about 380,000 barrels daily, thereby contributing to a rise in oil prices. Russia condemned the attack as a provocative move against international oil interests, placing pressure on U.S. strategic oil diplomacy.

(With inputs from agencies.)