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Contamination in Volga Region Russian Shuts Oil Flow to Europe

Contamination in Volga Region Russian Shuts Oil Flow to Europe Contamination in Volga Region Russian Shuts Oil Flow to Europe

Russia halted oil flows along the Druzhba pipeline to Eastern Europe and Germany in April because of contaminated crude, contributing to a rise in global oil prices and leaving refiners in Europe scrambling to find supplies. 
At least 5 million tons of oil, or about 36.7 million barrels, have been contaminated by organic chloride, a chemical compound used to boost oil extraction by cleaning wells and accelerating the flow of crude, Reuters reported.
The compound must be removed before oil is sent to customers because it can destroy refining equipment and, at high temperatures, generates poisonous chlorine gas. 
Russian pipeline monopoly Transneft said the contamination happened in the Volga region of Samara and blamed unidentified “fraudsters”. President Vladimir Putin said Transneft lacked a proper mechanism to prevent contamination. 
With a major export route shut, Transneft asked oil producers to reduce supplies to the system by over 1 million barrels per day between May 3-6, industry sources said. 
It was not clear if limits have been extended beyond May 6 but sources said it was likely because Druzhba remains out of action. Oil not taken by Transneft is being stored by producers but their capacity to do so is running out. 
Russian oil production in early May dropped to 11.19 million bpd from an average 11.23 million bpd in April.

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