Russia's Transneft shuns idea of strategic crude reserve

Fuente: platts

A Russian government proposal to create a strategic oil reserve out of the crude currently stored in state pipeline operator Transneft's pipelines and reservoirs is unrealistic, Transneft said Thursday.

Even though oil production is rising,the government has proposed creation of a large reserve that could be used "to stabilize world markets, avoid peak prices swings,and also regulate the domestic market," Transneft's information service said. Transneft is already expanding its own storage system to ensure the reliable functioning of its oil transport business. Transferal of oil from pipelines into a strategic reserve could impact negatively on the functioning of the transport network, Transneft said.