Russia cuts oil supplies to Germany

[armchair_jihad]

Russia has made significant cuts to oil supplies sent to German refineries recently, rekindling concerns in Germany over the reliability of Russian energy supplies.

Lukoil, Russia’s second largest oil producer, on Friday acknowledged that supplies to Germany had been reduced by about one-third in July and August but refused to explain why the reduction had occurred.

Analysts said Lukoil’s decision not to provide previously contracted quantities of oil could be aimed at extracting higher prices from German refineries or be part of Lukoil’s efforts to acquire stakes in German and European refineries.

Oil traders said a dispute between Lukoil and Sunimex, Germany’s biggest oil importer, might account for the supply cut, but the aggressive Russian strategy to acquire European refining assets could also play a role.

in full (subscription)

http://www.ft.com/cms/s/0/e9336464-523f-11dc-a7ab-0000779fd2ac.html

 

[Devil_Dog]

Lets invade Russia! Anybody? No? Ahh well....

 

[Werewolf]

Lets invade Russia! Anybody? No? Ahh well....

FFS - don't give the Shaved Chimp any new ideas!

 

[Devil_Dog]

From one shaved chimp to another: George, we can do this. The Ruskies will just roll over and play dead like the Iraqis. They have oil for christ's sake. Think of all the money Halliburton can make. Do you want a new sports car or not?
At which point George looks blankly at Chaney and goes, "Let's do it!"

 

[RHODESIAN]

I wonder what the going rate for a jerrican of derv is now?,always used to have a FEW spare on the POL waggon on ex in the 70's

 

[midnight]

The former Chancellor of Germany Gerhardt Schroder SPD joined the board of a Russian Gas Company (Gazprom?) shortly after being voted out of office 2 years ago.Whilst he was in office he pursuaded the russians to build a gas pipe-line through the Ost-See direct to Germany,deepening Germanies dependency on Russian Energy.

The ´chickens are coming home to roost´!

 

[tommy_cooker]

don't worry when America needs oil they WILL get it.. just shame millions will be killed in the process namely us lot.

 

[snapper]

Moscow by Christmas? anyone want to place a bet? Kick the door in and the whole rotten structure will fall down

At least the route recce's already done... just pick the right time of year this time and dont stop until the Kremlin ....

 

[TartanJock]

Britian relies on Russian Gas for our heating etc so I would not crow to loud it might just upset the poor Russians and they will pull the plug and we will freeze our erses aff this winter.

 

[dui-lai]

Britian relies on Russian Gas for our heating etc so I would not crow to loud it might just upset the poor Russians and they will pull the plug and we will freeze our erses aff this winter.

Not yet my friend!

 

[1140_Sqn]

how can the russians do this?? if they cut anyone else's gas supply, they wont have anyone to supply too!! they need all the business they can get!!

its because of the gas and oil russia is back on its feet....(ish)

 

[angular]

how can the russians do this?? if they cut anyone else's gas supply, they wont have anyone to supply too!! they need all the business they can get!!

its because of the gas and oil russia is back on its feet....(ish)

Well it's not as if the oil goes off if they don't sell it this week, eh? Lose $1M this week just to remind the boxheads who's boss? Well worth it, I'd have thought.

 

[Recruiting_Office_reject]

Its more than likely down to summer maintenance or a snafu. Most northern hemisphere oil and gas production takes a dive at this time of year.

Russia is after every penny it can get with current oil prices. It wouldn't be in its interest to deliberately upset a major country/Customer like Germany as they can shop elsewhere just like Britain has. We are now much less reliant on Russian Gas due to the new pipeline from Norway and will be even less so once the various new LNG import facilities are up to speed.

 

[jonwilly]

It's frequently said by the midia that there is no shortage of Oil, but there is a shortage of Refineries to convert the black crude into useful POL.
Hence
"the aggressive Russian strategy to acquire European refining assets could also play a role."

Hum Vlad taking a long term view,
john

 

[armchair_jihad]

It's frequently said by the midia that there is no shortage of Oil, but there is a shortage of Refineries

No really true Jon, we are past peak Oil (being the most that is easy to reach) now, most of what is left is hard to get to therefore more expensive.

What is not widely known is that when Oil companies state their 'reserves' they are double or triple counting - if they are sharing a field with another Company (which they all do) then each Company claims the entire field as their reserve.

Like three fat slappers each with a straw in the same cocktail.

Interesting times ahead.

 

[PassingBells]

Nobody ever said Boris was stupid.

 

[jonwilly]

Ah Peak Oil.
Long been debated if we passed the point years ago or if it's still to cum.
But for as long as Oil remains 'Cheap' and we still haven't gone over the High point reached after the 73 Mid East war, (Inflation wise).
And with the massive investment by companies world wide in Oil and it's products the World Economy is still dominate by oil.
I have asked on this and other boards just who gets the $70 per barrel. The land owner, the production company or the oil trader.
The land owners seem to be getting richer, the oil companies show massive profits and who wouldn't like to be a trader in crude.
john
Thinking of Three Fat Slappers, The Fat Slags plus one.

 

[Invictus_88]

Could someone explain to me why Russian diplomacy is so caustic, or at least so adversarial.

It seems to me that two* expanding markets have far more to gain by working together than by one continually throwing its weight about and casting the other into an almost existential state of concern for its future. Sustainable growth and long-term mutual benefit does not seem to be best developed through petulance.

However I'm just twenty, and the Russian authorities have rather more experience in the realm of international business politics. So what am I missing in the equation? It can't just be that Russians are awkward sods, surely?


*smudging the EU together into one for the sake of argument.

 

[KGB_resident]

First od all it is a private Russian firm Lukoil, not Russia lowered the supplies. It is a capitalism in action. Lukoil wants to buy 50% of shares of Ruhr Oel Gmbh and as a result to control 20% of German refinery business. In this case oil supplies would be very stable.

Many years the West was dreaming about capitalist Russia instead of communist Soviet union. Now enjoy.

 

[Invictus_88]

My understanding is that the oil industry and the political sphere were somewhat interconnected, and so certain indstrial actions can be said to be very much political (even, perhaps, governmental) moves.