Russian pipeline operator Transneft is restricting oil intake into its network as storage levels build, Reuters reported on March 29.
Transneft declined to comment on the report when contacted by S&P Global Commodity Insights. Citing unnamed sources, the report said that Transneft has told several Russian oil firms it will limit intake due to high volumes of stored oil, which affect flexibility and threaten normal operations. The curbs mainly apply to oil which has yet to find buyers, the report said. Buyers have shied away from Russian oil in recent weeks due to unprecedented Western sanctions introduced in response to Russia’s invasion of Ukraine. Russia has limited crude storage capacity, significantly less than the US and Saudi Arabia. Domestic options for storing excess production include some capacity at production projects, refineries and in Transneft’s network. Transneft does not […]