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Market Chatter: Kashagan Maintenance to Reduce Kazakhstan Oil Exports Amid Tight European Supplies

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Kazakhstan will lower CPC Blend crude exports to 1.3 million barrels per day to 1.4 million b/d in June as Europe faces tightening oil supplies, Bloomberg reported Tuesday, citing people with knowledge of the plan.

Work at the Kashagan oil field will reduce June export volumes from nearly 1.7 million b/d planned for May.

The maintenance program at Kashagan, Kazakhstan's second-largest producing oil field, will start in late May and continue through most of June, according to the sources.

European refiners have relied more heavily on Kazakh crude after tensions in the Middle East disrupted tanker traffic through the Strait of Hormuz.

Higher fuel costs have already affected Europe, with rising jet fuel prices pushing some airlines to trim flight schedules ahead of the summer travel season, the report said.

Before the conflict, CPC Blend traded at a discount of $3-$4/bbl to Dated Brent, but prices later climbed to a record $7.75 premium.

Although global crude prices have eased in recent weeks, CPC Blend spot cargoes still trade around $5 per barrel above the Brent benchmark, the report added, citing traders.

Kazakhstan supplies more than 90% of CPC Blend cargoes, while Russian-origin crude contributed only about 100,000 b/d in recent months, the report said.

Bloomberg calculations showed Kashagan produced about 390,000 b/d in 2025.

Roughly 80% of Kazakhstan's oil exports flow through the Caspian Pipeline Consortium, which links the country to Russia's Black Sea export terminals.

Caspian Pipeline Consortium and the Ministry of Energy of the Republic of Kazakhstan didn't immediately respond to' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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