Baltic Med Crude-Urals Weakens, Opens Arb Options

MarineLink.com
Wednesday, April 09, 2014

Russian Urals crude weakened in the Baltic on Wednesday due to a number of unsold cargoes while Kazakh CPC continued to strengthen due to a lack of sweet barrels.

In the Platts window, Trafigura bought a cargo of Urals from Eni at dated Brent minus $1.30 a barrel, some 35 cents weaker than previous price estimates, traders said.

Total bid for a cargo of CPC at dated Brent minus 40 cents, some 10 cents stronger than previous price estimates.

The price of Urals in southern Europe moved closer to parity with dated Brent due to an absence of Iraq's Kirkuk crude, strong demand and attractive refining margins, traders said.

Urals differentials in the Mediterranean were between minus 20 cents per barrel and parity with the North Sea benchmark, traders said Tuesday.

The difference in Urals prices between the Baltic and the Mediterranean offered arbitrage potential for Urals shipments from northern to southern Europe.

"The arbitrage even works for the Eastern Mediterranean unless it's the Black Sea," a trading source said. "All major players (refineries) are basically done with maintenance."

Repsol was using NS Arctic to move 100,000 tonnes of Urals loaded on April 4 at the Baltic port of Ust-Luga to Bilbao in Spain, according to the iMap vessel tracking system on Reuters.

Vitol chartered Liteyny Prospect to deliver 100,000 tonnes of Urals from Ust-Luga to the Spanish port of Cartagena on the Mediterranean in early April.

Repsol is also likely to ship two more Urals cargoes to its refineries. The cargoes were bought at a Surgutneftegaz tender March 28 and will be loaded at Primorsk on April 18-19 and Ust-Luga on April 19-20.

Russia's idle crude distillation units (CDU) capacity is expected to drop to 60,600 tonnes a day in May from April's 113,900 tonnes a day as several large refineries will finish seasonal maintenance, according to Reuters calculations based on the Energy Ministry's maintenance schedule.

Libya's state-run Petroleum Facilities Guard took full control of eastern-most Hariga oil port on Wednesday, but a handover by rebels to the PFG had yet to happen at the Zueitina port, a PFG spokesman said.

Iraqi Oil Minister Abdul Kareem Luaibi said he expected a deal to be reached within days to resolve an oil export dispute between the central government in Baghdad and Iraqi Kurdistan.

Iraq has raised prices it charges U.S. buyers for its Basrah Light crude oil while keeping prices little changed for Asian and European consumers, the State Oil Marketing Organisation (SOMO) said on Wednesday.

(Reporting by Dmitry Zhdannikov; editing by David Evans)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

VLCC Delivered to Gener8 Maritime

Gener8 Maritime, Inc., a U.S.-based provider of international seaborne crude oil transportation services, has taken delivery of the ECO VLCC the Gener8 Constantine on June 27,

BP Receives its First Venezuelan Crude Cargo under Swap Deal

Britain's BP Plc this month received a Venezuelan crude cargo from state-run PDVSA, according to Thomson Reuters trade flows data, the first since the companies

Oil Up on US Crude Draw; Brent Back Above $50

Oil prices surged 4 percent on Wednesday, with Brent settling above the psychological $50 a barrel mark, after a larger-than-expected drawdown in U.S. crude inventories.

Ports

COSCO Says Piraeus Port Sale Terms Inconsistent with Deal

COSCO Greece objected on Wednesday to terms submitted to parliament for the sale of Piraeus Port to China COSCO Shipping, saying they were inconsistent with those

Agthia Signs 25-year Lease in Abu Dhabi

Abu Dhabi Ports and Agthia Group PJSC have signed a lease agreement aimed at expanding the group’s existing Grand Mills Flour and Animal Feed facilities at Zayed Port.

Port Everglades, EPA to Study Air Emissions

Port Everglades has signed a partnership agreement with the U.S. Environmental Protection Agency (EPA) to study air emissions.   The EPA's Office of Transportation

Finance

Oil Up on US Crude Draw; Brent Back Above $50

Oil prices surged 4 percent on Wednesday, with Brent settling above the psychological $50 a barrel mark, after a larger-than-expected drawdown in U.S. crude inventories.

Baltic Index Rises on Greater Vessel Demand

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Wednesday, boosted by demand that is driving rates up across vessel segments.

CMA CGM Crosses 91.05% Ownership Threshold of NOL

CMA CGM S.A has crossed the compulsory acquisition ownership threshold in Neptune Orient Lines Limited (NOL).    Following its all-cash voluntary conditional

News

VLCC Delivered to Gener8 Maritime

Gener8 Maritime, Inc., a U.S.-based provider of international seaborne crude oil transportation services, has taken delivery of the ECO VLCC the Gener8 Constantine on June 27,

COSCO Says Piraeus Port Sale Terms Inconsistent with Deal

COSCO Greece objected on Wednesday to terms submitted to parliament for the sale of Piraeus Port to China COSCO Shipping, saying they were inconsistent with those

BP Receives its First Venezuelan Crude Cargo under Swap Deal

Britain's BP Plc this month received a Venezuelan crude cargo from state-run PDVSA, according to Thomson Reuters trade flows data, the first since the companies

Logistics

FMC's Doyle Addresses VGM Rules

U.S. Federal Maritime Commission (FMC) Commissioner William P. Doyle issued a statement on the upcoming implementation of the SOLAS Convention’s verified gross mass (VGM) requirements:   On Friday,

Baltic Index Rises on Greater Vessel Demand

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Wednesday, boosted by demand that is driving rates up across vessel segments.

Six-Month High for Service Reliability

Ocean carriers achieved a six-month high for liner service reliability in May, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators 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: 0.1072 sec (9 req/sec)