Newspaper article The Evening Standard (London, England)

Oil Leaps as Yukos Puts China Exports on Hold

Newspaper article The Evening Standard (London, England)

Oil Leaps as Yukos Puts China Exports on Hold

Article excerpt

Byline: STEVE HAWKES;JIM ARMITAGE

OIL jumped towards its highest level for a month today as Russia's cash-strapped giant Yukos shelved nearly all its crude exports to China.

US light crude shot above $46 a barrel, up 45 cents to $46.04, while Brent rose 40 cents to $42.85.

Rob Laughlin, analyst at GNI Man Financial, said: "This has put the fear of God into the market. If they're stopping exports to China, Europe could be next."

The Russian oil giant had its bank accounts frozen by government bailiffs as part of the Putin administration's attempts to get more than $7 billion ([pounds sterling]3.9 billion) in back taxes.

Now Yukos claims it does not have enough money to continue rail exports to China. It uses trains to send 100,000 barrels a day there.

Oil prices have rocketed this year as the buoyant Chinese economy leads to unprecedented demand. The Organisation of Petroleum Exporting Countries (Opec) is pumping out more than 29 million barrels a day to cool the market down. …

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