Med Crude-Urals Weakens to Cheapest in over a Year

Posted by Eric Haun
Tuesday, May 13, 2014

Russian Urals prices in the Mediterranean fell to their weakest in over a year on Tuesday, reflecting poor refining margins and an abundance of cheap alternative grades, although traders still expect a recovery if Russian exports fall in June.

"Urals margins have been weak for a long time and now they have just gone negative. Everyone was expecting some strength in May but the market has gone in the opposite direction. I have some, but not much, hope of a big strengthening in June," a Urals dealer with a trading house said.

"There is a May Urals cargo overhang. Some alternative grades such as Azeri and CPC have been trading weakly recently," said a trader with a major. "As soon as the backlog clears and June dates begin to emerge, I expect some strengthening".

In the Platts window, Vitol offered an 80,000-tonne cargo in the Mediterranean for end-May delivery at dated Brent minus $1.60 a barrel, some 25 cents weaker than previous price estimates, traders said. It found no buyers, they added.

The grade last traded in the Mediterranean at such weak levels in March 2013, at a time of large Russian refining maintenance works and heavy exports. By May last year trading in the grade was much stronger, at around parity with Brent.

Russian refining runs are set to rise steeply in June, according to the energy ministry, as the country's idle refining capacity will halve to 758,000 tonnes, representing only 3 percent out of the country's total refining capacity, compared with 6 percent that was idle in May.

In other grades, BP bid for a cargo of CPC for early June at dated Brent minus 25 cents, up some 35 cents, but found no sellers.

Traders said Croatia's Ina awarded a tender to buy either Urals or Azeri to an Azeri Light seller but prices could not be confirmed.

In other light grades, Libya's oil production was at 235,000 barrels per day, but details of output at the large El Sharara oilfield were still unclear after protesters ended a shutdown, a spokesman for the National Oil Corporation said.

(Reporting by Dmitry Zhdannikov; editing by Keiron Henderson)

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Grimaldi Orders Three PCTCs

After signing an order for the construction of five new ships two weeks ago, the Italian shipowner  Grimaldi Group has signed another contract for the construction

Caltex Replaces Australian Crew

The 36 Australian crew members of an Caltex tanker refusing to set sail after they were told their jobs would be gone after the next run. MR tanker Alexander Spirit (40,

Teekay LNG Partners Declares Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended June 30, 2015. The cash distribution is payable on August 14,

Energy

Aberdeen Pupils Peek into Subsea Oil & Gas Technology

Pupils at an Aberdeen primary school were given a rare insight into the depths of the oil and gas industry’s subsea sector after getting to sit in the driving

CNOOC Acquires Asia's 1st LNG Powered Tug

China National Offshore Oil Corporation (CNOOC) has taken delivery of Asia’s first tugboat Hai Yang Shi You 525, designed to operate solely on liquefied natural gas as ship’s fuel.

NITC Claims World's Largest Supertanker Fleet

According to the head of the National Iranian Tanker Company (NITC), Iran has 42 very large crude carriers or VLCCs, each able to carry 2 million barrels of oil, reports Press TV.

News

Aberdeen Pupils Peek into Subsea Oil & Gas Technology

Pupils at an Aberdeen primary school were given a rare insight into the depths of the oil and gas industry’s subsea sector after getting to sit in the driving

AVEVA, DNV GL's Sesam Integration Cuts Cost

Integration of Aveva and DNV GL's Sesam Reduces Costs in Maritime and Offshore Engineering. Engineers designing ship hulls and offshore floaters can now save

FORAN for Pertamina's Future Ships

FORAN has been chosen by state-owned company PERTAMINA to review the design of their future oil product carrier ships, under construction in a shipyard with the FORAN System.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1563 sec (6 req/sec)