Oil prices surge by 2% after drone attack hits key Black Sea terminal

Oil Prices Jump Amid Rising Tensions at Novorossiysk Terminal

Global oil prices experienced a sharp increase on Tuesday following a series of drone attacks targeting the Novorossiysk terminal, a key hub responsible for about 2% of the world's daily oil supply. The incident disrupted operations at the Caspian Pipeline Consortium (CPC), a crucial route for Kazakh oil exports managed by major Western companies such as Chevron and Shell, sparking immediate concerns over potential long-term supply shortages.

Market Response

The price of WTI crude climbed to $60.75, marking a 2.1% increase.

Meanwhile, Brent crude was trading at $65.13, up by 1.9%.

Details of the Attack

According to Reuters, two oil tankers waiting to load crude from Kazakhstan’s major oilfields were struck by drones at the CPC marine terminal near Novorossiysk on Russia’s Black Sea coast.

The CPC Marine Terminal, located close to Novorossiysk, is a major export point for Kazakhstan’s crude oil and also handles some Russian oil shipments.

The tankers Delta Harmony and Matilda were reportedly waiting to load oil from the Tengizchevroil and Karachaganak fields, respectively.

Tengizchevroil, which operates Kazakhstan’s massive Tengiz oilfield, is led by a consortium headed by Chevron. The Karachaganak field is managed by a partnership that includes Shell, Chevron, and Eni, among others.

Impact on Oil Exports

Drone strikes in and around the CPC terminal have become more frequent in recent weeks, disrupting the loading and departure schedules for Kazakhstan’s crude shipments.

Kazakhstan’s oil production dropped significantly at the end of November and into early December after damage at the CPC terminal restricted exports. Output fell further in early December due to storms and structural issues that limited the terminal’s loading capacity, forcing producers to reduce throughput as storage facilities reached capacity.

Approximately 80% of Kazakhstan’s crude exports depend on the CPC pipeline.

This disruption occurred as Kazakhstan was working to stabilize its oil production after a series of earlier interruptions at the CPC in 2025.

Although oil exports have continued, volumes have been lower. Kazakhstan has redirected some shipments away from the Black Sea in an effort to maintain steady supply.

The CPC pipeline stretches from Kazakhstan’s Caspian coast to the port of Novorossiysk, handling the majority of the country’s crude exports from fields operated by international oil companies.

Chevron and ExxonMobil subsidiaries hold minority stakes in the CPC, while the Russian Federation is the largest shareholder with a 24% interest.

By Tsvetana Paraskova for Oilprice.com

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