Europe has sharply reduced purchases of Russian oil

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Европа резко сократила закупки российской нефти

A number of European countries have significantly reduced purchases of oil in Russia, because they are not satisfied with the falling quality of the Russian Urals. On Tuesday RIA Novosti said the official representative of “Transneft” Igor Demin.

According to him, we are talking about deliveries through the Druzhba pipeline, which was built in the 1960s to supply the raw material countries of the former Communist bloc.

Exports via the southern branch of the pipeline in January-April declined by 10% compared with last year, said Demin.

Hungary has reduced its purchases by almost 20%, Slovakia 8%, Poland – by 2.3%. In total, these three countries receiving 80% of exports “Friendship”, nedolovili 530 thousand tons of oil, when compared with volumes for the first 4 months of 2017.

 

Customers are not satisfied with the sulphur content of Urals, explained Demin: now it is 1.75%, which is close to the limiting value set out in the standard and spelled out in contracts with customers (1,8%).

According to Reuters, which cites 8 sources in the energy market, and this figure is not maintained.

According to the materials of the measuring stations provided by three European companies, in February on the Northern branch of “Friendship” Russia selling oil, which was to 1.81 to 1.85% sulphur. The sulfur content of “off the charts, and it becomes systematic,” said the Agency in February, the representative of the European oil trader.

Marine supply of Urals sulfur content remained within the normal range, but rolls over density. In batches, sold from the port of Novorossiysk in the beginning of the year, this figure was 877,7-878,3 kilograms per cubic meter at 15 degrees Celsius, although the upper limit GOST – 873,5.

The inability to process beyond the standards of oil refineries makes purchasing more easy varieties and mix them with the Urals.

The cause of the problem is that light oil with low sulfur content in the priority order is sold in China, explained to Reuters a source in the Russian oil industry: China gets raw materials under the intergovernmental agreement, and Europe – “what is left”.

To rectify the situation could enter new fields in Eastern Siberia, but had to be postponed because of the deal with the OPEC countries, under which Russia agreed to cut production by 300 thousand barrels per day compared to levels in October 2016.

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