The SteveWire

SCW RUSSIAWIRE: "Russia Contaminates Its Oil And Is Finally Forced To Cut Production" - Forbes/ Ellen R. Wald

"... Russia ... will be cutting production by about 1 million barrels per day for five days[,] about 10% of ... total ... production. ... April 19, Transneft alerted ... [European] customers ... [that] oil currently on its way ... via its 3,400 mile pipeline was 'heavily contaminated' with organic chloride. ... used to increase oil production and accelerate the flow .... typically removed ... before transportation because it can damage refineries .... about 36.7 million barrels .... [A]t least one Russian firm has been trying to resell the contaminated oil at a discount .... Transneft was forced to shut most of its operations on the contaminated line and requested the production cut while it figures out what happened. Customers are still waiting for answers. ... Transneft ... blamed 'fraudsters' .... Putin put the blame squarely on Transneft [for] not hav[ing] adequate means to remove the organic chloride .... Contamination is not a new issue with Russia .... Transneft is ... state-owned ... with a [pipeline] monopoly .... [T]here are other options globally ... Russian crude ... will likely suffer ... a loss of confidence [relating to both the contamination and the] ... lack of communication ... an embarrassment for Russia ... hurt[ing] ... [European] contracts ... [Yet the production cuts are] the first sign in 2019 that Russia may actually approach compliance with [OPEC-related] commitments ...."

Click here for: "Russia Contaminates Its Oil And Is Finally Forced To Cut Production" - Forbes/ Ellen R. Wald 4.30.19 ... SteveWire post 5.6.19

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