Prices for March CPC Blend crude oil cargoes have strengthened after hitting their lowest levels since late 2022 for February volumes, as supply disruptions eased and production recovered at Kazakhstan's giant Tengiz oilfield, three industry sources told Reuters.
Exports through the Caspian Pipeline Consortium (CPC) — Kazakhstan's main oil export route — have been highly volatile in recent months due to drone attacks, terminal repairs, adverse weather, and reduced output at Tengiz.
CPC Blend cargoes loading in March were sold at discounts of about $3 per barrel during the last seven days. This is a marked improvement from discounts to dated Brent of around $5 per barrel for February shipments, when supply interruptions dampened buyers' interest, according to the sources.
Though exports via CPC were still being disrupted this month, the situation has improved and traders expected more volumes of this important feedstock for European refiners next month.
Traders also noted that attractive pricing and reports of production recovery at Tengiz have boosted demand for CPC Blend, prompting many buyers to return to the market.
The CPC plans to increase oil shipments in March to about 1.7 million barrels per day from 1.1 million bpd in the revised February schedule.
The pipeline handles more than 80 per cent of Kazakhstan's oil exports, with most crude sourced from the Tengiz, Kashagan, and Karachaganak fields and shipped via the consortium's marine terminal at Yuzhnaya Ozereyevka near Novorossiysk.
Russia owns a 31 per cent stake in the CPC, Kazakhstan holds 20.75 per cent, Chevron 15 per cent, with the remainder owned by private companies.
(Reporting by Reuters, editing by Andrei Khalip)
