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Med Crude-Urals weaken further in north amid ample supply
July 14, 2015 / 5:02 PM / in 2 years

Med Crude-Urals weaken further in north amid ample supply

MOSCOW, July 14 (Reuters) - Russian Urals crude differentials slipped further in northwest Europe on Tuesday thanks to additional supplies of cargoes in July and as cargoes have been slow to clear, traders said.

In the Platts window, Total agreed to buy 100,000 tonnes of Urals crude URL-E from Glencore for loading on July 24-28 at dated Brent minus $1.60 a barrel, traders said.

Vitol sold to Eni a cargo of the same size at dated Brent minus $1.50 on the same dates, they said.

That was 20-30 cents a barrel below the previous levels for the grade in the region.

In the paper market, Urals contracts-for-difference (CFDs) for July in northwest Europe fell to minus $1.40-$1.55 a barrel, while contracts in the south stood at around minus $0.30 a barrel.

“The market (for the northwest Europe) is coming off,” a source with a dealer said.

Russia’s top oil producer Rosneft will ship an additional 200,000 tonnes of crude oil from the Baltic Sea port of Primorsk in July, traders said on Monday.

There was no activity in the Platts window for Urals in the south, while traders say sellers may still have unplaced Aframaxes and Suezmaxes ex-Novorossiisk in July.

High spreads between the grades in North and Mediterranean create a possibility for arbitrage, they added.

No bids or offers for CPC Blend CPC-E and Azeri Light AZR-E were seen by traders in the Platts window.

Fitch Ratings said in its latest Russian Oil and Gas Dashboard that Russia’s oil production may dip in 2016, due to US/EU sanctions. (Reporting by Gleb Gorodyankin and Vladimir Soldatkin; Editing by Susan Fenton)

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