Kazakhstan oil prices have dropped to a record low

The price of CPC Blend crude oil exported from Kazakhstan through the Caspian Pipeline Consortium (CPC) is being sold on world markets with a discount of up to 5 dollars per barrel. This was reported by Zamin.uz.

This figure is recorded as the lowest level observed since the end of 2022. According to data, the price decline has increased interest in CPC Blend oil and demand has recovered in a short time.

For this reason, the low prices did not last long. Experts explain the main cause of this situation by concerns arising from disruptions in deliveries among major buyers of Kazakhstan oil.

As a result, some buyers temporarily switched to other oil grades. In recent months, oil deliveries through the CPC have been halted several times.

These disruptions were related to drone attacks from Ukraine, adverse weather conditions, repair works at the loading terminal, as well as a reduction in production volume due to a generator fire at the Tengiz field. According to the Reuters agency, oil exports from the Tengiz field in February are expected to amount to only 35 percent of the planned volume.

In January, the total export volume was approximately half of the plan. In January, a portion of the oil extracted from the Kashagan field was directed to the domestic market for the first time.

Usually, nearly 80 percent of Kazakhstan's oil is exported through the CPC. Crude is delivered via pipeline from the Tengiz, Kashagan, and Karachaganak fields.