The estimated price of Russian Urals oil was negative

As stated in the publication of the Argus, on the Russian domestic market, there are pricing formulas that serve as a guide for pricing.

So here is the quote Argus fip Western Siberia on Monday was equal to minus 1007 rubles, and on Tuesday and did amounted to 1,200 rubles per ton. This quote applies when the seller is obliged to deliver the goods to the pipeline Western Siberia at his own expense. The unprecedented drop in oil prices has led to what is now the transportation costs for the seller exceeded the value of the oil.

At the end of March the average value of quotations of Argus fip Western Siberia still remains in positive territory. But if the period of low oil prices will be long, the oil suppliers will not only cease to earn, but will begin to lose money, while continuing to work.

Today the President of Russia Vladimir Putin said that he discussed the fall in oil prices with its partners in OPEC and the United States. According to him, all this situation is also of concern, as well as Russia. Putin added that Russia together with the main producers and consumers of oil we must develop solutions that will soften the situation on the market.

Read the article: “Life after oil will be a bad dream”.