Rosneft is forced to drastically cut oil supplies to major buyers

Russian supplier of oil “Rosneft” faced with the shortage of raw materials for export to foreign customers under long-term contracts in June.

«Роснефть» вынуждена резко сократить поставки нефти для крупнейших покупателей

Reuters sources in oil industry said that “Rosneft” has informed the Ministry of energy of the Russian Federation about the unwillingness for extension of reductions scheduled in may-June level. The reason – lack of oil to run in the supply of raw materials for the domestic market and for export.

“They (Rosneft) are trying to scrape up oil for export and not to leave empty factories. They have the same obligations for fuel,” said one of the traders in the oil market of Russia.

It is noted that the amount of oil produced affected and the repairs that took place at the refineries in may, and introduced in connection with the pandemic coronavirus quarantine.

According to the source, “Rosneft” because of the lack of resources forced to drastically reduce oil supplies to address the largest buyers of its marine goods and trading companies Glencore and Trafigura.

Traders note that for 26 days in may “Rosneft” has reduced oil production by about 17%.

Recall the oil for peace between Russia and Saudi Arabia two weeks before OPEC talks+ were under threat. Position in oil production of Moscow and Riyadh again dramatically diverged. Russia is not ready to radically reduce oil production on the fear of losing part of the reserves of energy resources in the complete shutdown of the oil wells. Given the state of wells, the method and quality of oil produced, most of the wells will be impossible to run.Negotiations OPEC+ scheduled for 5 June 2020.