www.zerohedge.com BY TYLER DURDEN
Russia’s Transneft, operator of the world’s largest oil pipeline network, has taken the unprecedented step of imposing caps on oil received by it as storage filled up amid weak Western demand for Russian oil, Reuters reports citing five sources familiar with the matter.
While Russian oil exports are still flowing – especially in the direction of India and China – despite self-imposed sanctions by western energy buyers, difficulties with payments, insurance and shipping as well as curbs on dealing with several Russian oil suppliers forced many regular buyers to shun the market, leaving barrels unsold.
And as the oil plumbing has literally clogged up, Transneft has told several Russian oil firms it would limit intake to its system amid high volumes of stored oil, which affect flexibility and threaten normal operations.
