In Russia studying the feasibility of establishing oil storage tanks

Ministry of energy is reviewing the feasibility of construction of a system of oil storage tanks in the country from the point of view of economic feasibility and project cost. About it today in interview to the journal “Neftegazovaya Vertikal” said the Deputy head of the Ministry Pavel Sorokin.

According to him, “the question of creating storage at the moment actively studied, the energy Ministry together with the industry”. “This is a complex issue, the aim of which is to understand the potential of this project from the point of view of smoothing of fluctuations of supply and demand, creating the preconditions for the intensification of trading on the Russian marker of sorts, and most importantly, the cost of the project. Based on the results of these surveys, it will be possible to determine the feasibility of construction of additional storage facilities”, — quotes RIA “news” the Deputy Minister.

Earlier, the Russian gas society (RGS) has called for the creation in Russia of a system of storage facilities the strategic petroleum reserve in the amount of 10% of the annual production level.

we also Recall that since the beginning of this year on the global oil market rode several waves of falling prices for “black gold”. The negative situation caused by a whole complex of factors: a General overproduction of raw materials, a sharp drop in demand due to the rapid spread of coronavirus infection COVID-19 (March 11, was declared a pandemic) and concerns about its impact on the global economy and the collapse of the deal, OPEC+ (officially from April 1, but in fact, after fruitless negotiations of the countries-oil producers at a meeting on March 6 in Vienna). Just last circumstance was the trigger to the collapse in oil prices. Moreover, Saudi Arabia announced plans to increase production and lower oil prices. Later, the desire to lower the prices declared Iraq, Kuwait, UAE and Nigeria.

For the first quarter of 2020, the price of Brent crude fell by 65.6%, while WTI rose by 66.5%. And at the end of March, the cost of the June fRami of Brent fell below $22 per barrel (to $of 21.72), that is, to at least March 2002, and the may futures for WTI to us $20.1.

on April 12 OPEC countries+ finally agreed on a new deal, joined by 23 States. The agreement will be valid for two years, from may 1, 2020 to may 1, 2022-th. In may—June this year, the production cuts will amount to 9.7 million barrels per day (from October 2018), then — until the end of 2020 — 8 million barrels, and 6 million by the end of April 2022. While Russia and Saudi Arabia base count will be 11 million barrels per day (of the Russian Federation in the first 2 months will reduce production at 2.5 million barrels per day). New business OPEC+ was a forced reaction of oil producing countries on the situation in the market and pressure from the United States. Overall, however, it does not cover the volume decline in world demand for the same in the market have accumulated huge reserves of raw materials. Nevertheless, assured the head of the Ministry of energy Alexander Novak, if necessary, the parties to the transaction can take additional measures to stabilize the situation on the market.

on June 6, the member countries of OPEC+ extended on a month — until the end of July — the period of validity of the agreement to reduce oil production to 9.7 million barrels per day.

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