Russia pipeline fire halts fifth of oil exports

MOSCOW (Reuters) – An oil leak and a fire on a pipeline in central Russia have halted one fifth of supplies of the world’s second-largest oil exporter to global markets on Wednesday for at least a few days.

An accident on a major pipeline serving Russia’s Black Sea port of Novorossiisk occurred only a few days before Russia is due to send a high level delegation to a meeting of the Organisation of Petroleum Exporting Counties in Vienna.


Russian officials have said the country’s oil firms could reduce production and exports if prices fell further but refrained from firm pledges after oil stabilised at $40 per barrel, an absolute minimum Russia needs for its revised budget.

Officials at Novorossiisk said oil flows had been halted on Wednesday morning and exports were unlikely to resume in the next three to four days.

Reuters