Bloomberg: Oil price soars in Europe as Kazakh supply runs short After attacks on CPC terminal

European oil prices have surged sharply following supply disruptions from Kazakhstan, driven in part by recent drone attacks on the CPC terminal in the Black Sea.

The main reason is a shortage of the CPC Blend grade, exported through the Caspian Pipeline Consortium. Deliveries are currently delayed. The situation has also been worsened by outages in Libya and the North Sea, Caliber.Az cites a Bloomberg report.

According to the agency, physical crude grades in Europe are currently trading at a premium. WTI Midland, which is important for Brent pricing, was sold on January 13 for $2.90 above the base price—the highest level in over a year.

“The price of Azeri Light, a favourite among Mediterranean refiners, also soared to a one-year high,” the report reads, underlining that refiners are choosing these grades in the absence of CPC Blend.

Demand for “sweet” (low-sulfur) crude is rising amid its shortage. At the same time, heavy grades, including Venezuelan crude, are in surplus. This imbalance only increases regional disparities: Europe is suffering from shortages, while Asia continues to buy discounted oil.

Bloomberg reports that the export disruptions from Kazakhstan occurred at a critically important time. January shipments fell by nearly half of the planned volume, a decline of 900,000 barrels per day compared to September. Causes included weather conditions, prolonged equipment maintenance, and the effects of drone attacks on the CPC terminal in the Black Sea that occurred a few days ago.

The biggest hit occurred on November 29, when drones disabled the WPU-2 (offshore loading unit). The CPC terminal had already recorded attacks in November, September, and February of the previous year. Additional pressure came from Russian disruptions: after attacks on Lukoil platforms, exports from Russia via the Caspian fell by 150,000 barrels per day.

Oil traders are already shifting deals to more stable grades. Meanwhile, the market expects Kazakh supplies to recover: Bloomberg estimates that CPC Blend exports will reach 1.5 million barrels per day in February, almost returning to normal levels.

By Khagan Isayev