Drone Attack Disrupts Kazakhstan's Oil Pipeline Export

Kazakhstan's oil exports face a potential 30% cut for up to two months due to damage from a Ukrainian drone strike on the main pipeline. The attack occurred before U.S. and Russian talks to end the war in Ukraine. Oil prices and the markets may face instability as a result.

Kazakhstan's oil exports might plummet by 30% for up to two months following severe damage from a Ukrainian drone attack on the main pipeline, as per Russia's state pipeline operator on Tuesday. The incident occurred a day before crucial talks between U.S. and Russian officials in Riyadh aimed at ending the Ukraine conflict, as Kyiv and its European allies observed from the sidelines.

At least seven explosive drones targeted the Kropotkinskaya station on the CPC pipeline in Russia's Krasnodar region, inflicting 'serious damage', according to pipeline operator Transneft. The compromised route transports oil to the global market from Kazakhstan, involving major international firms such as Chevron and Exxon Mobil.

The attack has heightened concerns over energy infrastructure security and its impacts on global oil prices. A reduction in oil supply from Kazakhstan could result in daily losses of up to 380,000 barrels. Benchmark oil prices saw an initial increase but later declined, trading above $75 per barrel on Tuesday.

(With inputs from agencies.)