SMM News: according to foreign media, according to the Russian Ministry of Finance, Russian oil export tariffs will rise from June 1, 5.8US dollars (6.9yuan), to 110.4 US dollars. Some analysts believe that this is another major decision made by Russia on oil after the "oil outage" incident.
According to the Russian Satellite News Agency, according to materials published on the website of the Russian Ministry of Finance, the average price of Ural crude oil during the monitoring period from April 15 to May 14, 2019 was US $72.23 per barrel, or US $527.3 per ton.
Tariffs on petroleum products, oil and gasoline will also rise. LPG export tariffs are still zero.
This is not the first time Russia has recently raised oil export tariffs. According to the official website of the Russian Ministry of Energy, since May 1 this year, Russian oil export tariffs have been raised by US $7.20 per tonne to US $104.6 per tonne.
Reuters noted that in April this year, an oil pollution forced Russia to stop the oil transportation of the Druzhba oil pipeline. Druzhba is an important oil pipeline to Eastern Europe and Germany. The suspension has led refiners to look for alternative supplies, and the duration of the shutdown is unclear.
Analysts at Citigroup believe the decline in Russian exports is enough to affect the balance between supply and demand in the oil market. "although it is still difficult to assess the ultimate impact on supply and demand, the severity of the problem could mean that up to 400000 barrels per day of Russian crude exports could be absent from the market for longer than previously expected." They wrote.
According to the report, this will lead to further tightening of market supply, and before the shutdown of the Druzhba pipeline, the Organization of Petroleum Exporting countries (OPEC) has already signaled that demand will exceed production of more than 800000 barrels per day in the third quarter. Further production cuts in Russia will mean that the "OPEC +" oil producers will cut production even more than promised.
Original title: "Russia makes a major decision on oil"