“Russian and Kazakhstan oil exports via the Caspian Pipeline Consortium (CPC) may fall by up to 1 million barrels daily due to storm-damaged berths,” Energy Intel reported, citing Pavel Sorokin, Russia’s Deputy Energy Minister. 

The pipeline, shipping around 1.2 million barrels daily, or 1.2% of the global demand for oil, will be offline due to about two months of repair work.

Market reaction

The above piece of news is likely to accentuate the tightening of the global energy supplies, with the Western sanctions on Russia already leading a supply crunch.

WTI was last seen trading at $110.50, up 2.02% on the day.