Russia halves Western sea oil exports in May after OPEC+ deal

Russia plans to halve oil exports from its Baltic and Black Sea ports in May according to the first loading schedule for crude shipments since it agreed this month along with other major oil producers to cut output.

According to the schedule seen by Reuters, Russian exports next month from its two Baltic ports and Novorossiisk in the Black Sea will total 1.3 million barrels per day (bpd), down from 2.2 million bpd in April.

The OPEC+ group led by Saudi Arabia within OPEC and Russia for non-OPEC states has agreed to cut oil production by 9.7 million bpd from May 1, with Moscow reducing its output to 8.5 million bpd from a baseline of 11 million. Russian oil companies are now preparing for their biggest output cuts ever, which could lead to some oilfields shutting down permanently.

Most of the crude set for export via Russia’s Western sea routes in May is its flagship Urals blend, with only 160,000 tonnes of Siberian Light due to be shipped as well, according to the preliminary loading schedule.

Urals exports are set to fall to their lowest since at least the early 2000s, Refinitiv Eikon data shows. The drastic cut has already lifted the price of the Russian grade to five-month highs, according to Reuters monitoring