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Med Crude-Urals diffs seen slightly stronger, CPC Blend jumps to premium
November 30, 2017 / 4:54 PM / in 16 days

Med Crude-Urals diffs seen slightly stronger, CPC Blend jumps to premium

MOSCOW, Nov 30 (Reuters) - Urals crude differentials in northwest Europe were seen slightly higher in a spot tender on Thursday, while Caspian CPC Blend differentials flipped to a premium over dated Brent.

OPEC agreed on Thursday to extend oil output cuts until the end of 2018 as it tries to finish clearing a global glut of crude, while signalling it could exit the deal earlier if the market overheats.

Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market does not flip into a deficit too soon, prices do not rally too fast and rival U.S. shale firms do not boost output further.

There were no bids or offers for Urals and Azeri BTC in the Platts window in Thursday, traders said.

To see Urals crude final loading plan for December click on -

In CPC Blend, Eni bid for 85,000 tonnes of the grade for Dec. 21-25 loading up to a premium of $0.25 a barrel to dated Brent without finding a seller.

The grade was assessed at a discount of some $0.15-$0.05 a barrel on Wednesday.

At the same time, traders said that the price of cargoes depended a lot on the loading dates because of backwardation on Brent CFDs.

Iran has supplied 1 million barrels of oil to other countries in November as a part of bilateral deal with Russia and plans to supply another 5 million tonnes in 2018, Russian Energy Minister Alexander Novak told reporters.

TENDERS

Russia’s Sugrut sold in a spot tender two 100,000-tonne cargoes of Urals to Shell and BP, traders said.

Shell won the right to lift a cargo ex Primorsk for Dec. 22-23 at a discount of some $0.70-$0.75 a barrel to dated Brent, while BP won a cargo from Ust-Luga on Dec. 27-28 at around minus $0.60-$0.65, they added.

The tender closes on Nov. 30 at 14:00 Moscow time. (Reporting by Gleb Gorodyankin; editing by Alexander Smith) ))

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