Russia studying large oil inventory – Sechin

TYUMEN, Russia (Reuters) – Russia is working towards creating a state reserve to buy crude from producers when prices are low, potentially removing up to 16 million tonnes of Russian oil from export markets, a
top energy official said on Monday.

Deputy Prime Minister Igor Sechin, who oversees the oil and gas sector, said the move could help the Organisation of Petroleum Producing Countries (OPEC) stabilise oil prices.


Sechin travelled to Algeria in December and told OPEC delegates that Russia, the world’s second-largest oil exporter and the biggest outside OPEC, could cut exports by 16 million tonnes, or 320,000 barrels per day, if oil prices fell further.

As oil prices have stabilised around $40 per barrel, Russian exports have instead risen to above 4 million bpd in the past two months in what traders said was further proof Russia will limit cooperation with OPEC to verbal pledges.

On Monday, Sechin resurrected the same 16 million tonnes figure, saying Russia could buy this volume from its companies for the state reserve. He did not specify a time period.

Russia produces around 9.7 million bpd, or 485 million tonnes of oil, per year. Purchases of 16 million tonnes of oil per year into the reserve would represent over 3 percent of Russia’s annual oil production.

Reuters