Oil Firms Producing at Loss Due to Lower Crude Prices
The country's oil companies are losing money on crude production after a decline in prices pushed the market value of a barrel of the Urals blend below the cost of getting the fuel to consumers and paying taxes, UBS said Tuesday.
A Russian company shipping crude from the Siberian city of Nizhnevartovsk would post an operating loss of $13 per barrel after costs and taxes are taken into account, analysts Dmitry Lukashov and Maria Radina said a note to investors. "Every company in Russia is losing money on crude oil export deliveries or crude oil domestic deliveries," Lukashov said later by telephone. "If you don't have a refinery, you're losing money."