Kazakhstan's CPC Blend crude oil, exported through the Caspian Pipeline Consortium (CPC), is sold on world markets with a discount of up to $5 per barrel. This situation is assessed as the worst indicator observed since the end of 2022.
It was reported that the reduced prices increased interest in CPC Blend oil, and demand recovered in a short period. Therefore, low prices did not last long.
The main reason for the price decrease is that large buyers of Kazakh oil, worried about supply disruptions, temporarily switched to other types of oil.
In recent months, the shipment of Kazakh oil through the CPC has been suspended several times. This was caused by Ukrainian drone attacks, unfavorable weather conditions, repair work at the loading terminal, and a decrease in production volumes following a generator fire at the Tengiz field in January.
According to Reuters, oil exports from the Tengiz field in February may amount to only 35% of the plan. In January, the total volume of exports was about half of the planned figure.
Due to supply disruptions, part of the oil extracted at the Kashagan field in January was sent to the domestic market for the first time. As a rule, about 80% of Kazakhstan's oil exports are accounted for by CPC. Raw materials will be supplied to the pipeline from the Tengiz, Kashagan, and Karachaganak fields.
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