US monitoring Yukos situation's affect on oil market: Abraham

Washington (Platts)--28Jul2004

The US Energy Department is monitoring the potential disruption of crude
supplies from Russia, due to the legal problems of major Yukos, and is "trying
to determine what the consequences of it is," US Energy Secretary Spencer
Abraham told reporters Wednesday. 

"We are obviously monitoring that situation," Abraham said in response to
questions about tax woes at Yukos, which threaten a halt in the company's
production and exports. September NYMEX crude oil futures prices have surged
past $43/bbl on the disruption fears. 

In May, the US imported 4.413-mil bbl, roughly 140,000 b/d, of crude from
Russia, making the country the 14th largest exporter to the US that month,
according to the US Energy Information Administration. Overall, the US
imported 320-mil bbl during May. Abraham noted that world oil production was
"substantially higher than last year" and that inventories were also ahead of
last year's levels.

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