Russia’s main oil grade is trading at around $34 a barrel now. Lukoil, one of the big companies that was sanctioned a couple months ago, is also struggling to keep its operations liquid and above water.
> “The upstream oil industry is sliding into a crisis, and the most recent sanctions are going to accelerate that,” said Craig Kennedy, former Bank of America vice president and now an expert at the Davis Center for Russia and Eurasian Studies at Harvard.
>“There are only so many buyers with an appetite for sanctioned oil,” Kennedy told The Washington Post. “When you do the numbers, it looks like somewhere between 1.6 million and 2.8 million barrels per day will get stranded without firm demand. At the moment, a lot of unsold oil is being stored on the water in tankers.”
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Russia’s main oil grade is trading at around $34 a barrel now. Lukoil, one of the big companies that was sanctioned a couple months ago, is also struggling to keep its operations liquid and above water.
> “The upstream oil industry is sliding into a crisis, and the most recent sanctions are going to accelerate that,” said Craig Kennedy, former Bank of America vice president and now an expert at the Davis Center for Russia and Eurasian Studies at Harvard.
>“There are only so many buyers with an appetite for sanctioned oil,” Kennedy told The Washington Post. “When you do the numbers, it looks like somewhere between 1.6 million and 2.8 million barrels per day will get stranded without firm demand. At the moment, a lot of unsold oil is being stored on the water in tankers.”