Thursday, June 21, 2007

Russian Oil Says" Go Elsewhere."


The Russian oil giant Gazprom announced yesterday that it intends to cancel gas trading agreements with China. According to the state-owned company, Russia needs the gas and can’t afford to export it.
If the contracts are indeed canceled, China will be short over 12 billion barrels of gas this year. Exxon will get squeezed, too. The gas is due to be exported through an Exxon Mobil facility in Siberia.
At the end of the day, that gas will need to come from somewhere. We’ll keep our eyes peeled.

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