Adding further bullish bias onto the crude oil price amid sanctions on Venezuelan and Iran and an output cut from OPEC-kingpin Saudi, Millions of barrels of contaminated Russian oil had been stuck in the pipelines from Belarus to Germany for weeks.
Western oil companies alongside European refiners had made payments for that Russian oil more than a month ago, however, after discovering the extent of contamination level, European refineries had been facing a critical catch-22, as they did not want to freeze payment in order to maintain a long-term relationship with the world’s second-largest crude oil producer.
Instead of freezing payments or asking for a payback, several Western buyers of Russian crude had been in discussions over the recent weeks on how they could resolve the mess and financial terms of the cost required, at least four traders involved in Russian oil trading unveiled on Thursday, the 16th of May 2019.
According to the traders, as estimated 19 million barrels of contaminated crude oil that could not be used, had been stuck in the pipelines and on the oil tankers, raising questions over the fate of around $1.2 billion worth of contaminated crude oil.
Meanwhile, attaining bullish bias amid a number of issue contributing to a mass-scale supply crunch, both US and UK crude had soared more than 1 percent on Thursday (May 16th), while US West Texas Intermediate Future had wrapped up the day 1.63 percent higher at $63.29 per barrel, and Brent crude had added 1.15 percent to settle at $72.24 a barrel.