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Anguish Grows in Russia Oil Sector Overwhelmed By Price Fall

  • Independents may face bankruptcy amid storage, demand issues
  • Lack of storage compounds Russia’s costlier pumping operations
Photographer: Andrey Rudakov/Bloomberg
Updated on

As Russia’s small oil producers struggle to survive a historic price crash, some say in private they wish they could just set their crude ablaze.

The sentiment, though wishful thinking, lays bare the scale of the issue for Russia during the global pandemic -- there is too much crude and nowhere to store it. While Saudi Arabia and the U.S. have more places to keep it, Russia is getting increasingly desperate. Even turning off the taps is expensive.