Russian refineries suffer from cheap oil worse than the mining companies.
Edited by Rhod Mackenzie / 2016-01-25 02:54:24
Diesel Finance Oil and Gas Refining Russia Financial results Petrol Russia Oil and Gas Bashneft Gazpromneft Lukoil Oil Production and Refining Rosneft Surgutneftegaz
Break-even point of an average refinery in Russia is $ 18-25 per barrel due to the nature of the tax industry.
Russian refining is much more sensitive to a fall in oil prices than the production, the analysts from Goldman Sachs write. If the break-even point for Russian oil companies was $ 5-10 per barrel, for the oil refineries it is $ 20-25 per barrel. On Friday a barrel of Brent cost $ 32. Earlier the analysts did not exclude that speculators could drop the price of Brent to $ 10 per barrel. But the Russian Ministry of Energy does not expect prices fall below $ 20 a barrel, the Deputy Minister of Energy Kirill Molodtsov stated at the beginning of January. International Agency EIA predicts an average of $ 40 per barrel in 2016.
