Russian June local oil prices soar on export rush
MOSCOW, June 2 (Reuters) - Russian domestic oil prices for June delivery jumped to a new all time high on a severe crude shortage at home as oil firms rushed to export more to take advantage of record global prices, traders said.
Traders polled by Reuters said prices rose by over 20 percent or 2,000 roubles ($84.24) per tonne from May.
Deals were done at around 11,500-12,400 rouble per tonne at West Siberian metering points URL-WSB, up from 9,600 roubles in May.
Up to 3 million tonnes of crude is sold monthly by small producers and major firms that lack refining capacity, and is bought by independent refiners such as the Bashkir group of plants and the Moscow refinery.
Global crude prices jumped by over $13 per barrel or by $95 per tonne since oil last traded on the Russian local market in May. The jump made a new increase in Russian customs duty from June neglectful and encouraged further export operations.
The jump in exports will also coincide with rising refinery runs in June after a number of plants have come out of the maintenance season which will make crude shortage even more acute, traders said.
Oil firm Surgut (SNGS.MM: Quote, Profile, Research), one of the biggest sellers, will halve domestic crude sales in June versus May to 250,000 tonnes.
TNK-BP (TNBPI.RTS: Quote, Profile, Research) also sold 250,000 tonnes, a cut by a quarter from May.
Oil major Rosneft (ROSN.MM: Quote, Profile, Research) will also cut domestic crude sales to 150,000 tonnes from 280,000 tonnes in May. Continued...
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