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Market Chatter: Sibur Plant Shuts After Drone Attack, Russian Crude Exports Hit May Low

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Sibur's Zapsibneftekhim plant in western Siberia shut after a drone attack damaged the facility on Monday, with operators assessing the extent of the damage, Reuters reported Tuesday, citing three industry sources.

Tyumen Governor Alexander Moor said a drone attack sparked a fire at an industrial site, while no LPG volumes appeared Tuesday at the Tobolsk loading point on the St. Petersburg International Mercantile Exchange.

Industry sources cited by Reuters said the plant accounts for roughly 40% of Russia's LPG output, producing about 6 million metric tons annually, the report added.

Sibur did not immediately reply to' request for comment.

Renewed Ukrainian strikes on Russian refineries are again disrupting processing after refiners used a pause in attacks to make repairs and raise output, potentially reducing crude available for export. Attacks also targeted tankers and Black Sea facilities, according to a report from Bloomberg.

Russia exported 3.71 million barrels of crude a day in the four weeks to Aug. 9, the lowest since late May, while 32 tankers loaded 22.78 million barrels in the single week to Aug. 9, down from 24.49 million on 35 ships, the report said.

Flows to Russia's Asian customers slipped to 3.5 million b/d in the 28 days to Aug. 9, from 3.62 million b/d in the prior period, while shipments to China fell to 1.16 million b/d from 1.24 million b/d.

Russian crude flows to India dropped to 770,000 b/d from 1.12 million b/d, though volumes could rise above 2 million b/d as recently loaded tankers arrive, with 1.58 million b/d yet to show final destinations, according to the report.

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

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