19 January 2018, Friday, 8:51

No annual oil balance expected


It's possible that Belarus and Russia will not agree on the annual oil balance for 2013.

The amount of oil supplies to Belarus will be approved by Moscow every quarter, Belarusian players of the oil refining market think.

“We have all grounds not to expect the annual balance. An indicative balance for 2013 is likely to be signed. It will set quarterly volumes of supplies and offer an opportunity to adjust them depending how Belarus fulfils its obligations on fuel deliveries to the Russian market, Interfax-West news agency learnt from a player of the oil refining market familiar with Russia's preliminary position in the oil balance talks.

He does not rule out that Russia may take a decision at the end of Q1 to reduce oil supplies in the second quarter in comparison with those in January-March,

“The adjustments may be based on the volume of 18 million tonnes per year, which is 4.5 million tonnes per quarter,” the source supposed.

He noted that Belarus got an opportunity in the first quarter to import 725,000 tonnes of oil by rail in addition to importing 5,025,000 tonnes through pipelines. “Taking into account the growth of national rail tariffs and the constant wagon fleet deficit, it will be a difficult task,” the source said.

He noted that oil deliveries by rail would worsen situation in the oil refining sector.