Med Crude Urals Weaken on April Cargo Overhang

Posted by Eric Haun
Thursday, April 10, 2014

Russian Urals crude weakened on Thursday in a flurry of deals as traders rushed to place end-of-April cargos.

Eni sold a cargo of Urals to Total in the Baltic at dated Brent minus $1.50 for April 20-24 delivery, some 20 cents weaker than previous price estimates. Also in the Baltic, Vitol sold an early May cargo to Shell at dated Brent minus $1.35, traders said.

In the Med, Eni sold a 80,000-tonne, April 26-30 cargo to Total at dated Brent minus 65 cents and Tenergy sold an April 22-26 cargo to Glencore at dated Brent minus 70 cents, traders said. That was 50-60 cents weaker than previous price estimates.

"There was clearly a certain overhang of Urals in the market but maybe the weakening is a bit overdone now," said a trader with a major.

"I'm sure that in the next few days people will start talking about Russian refineries returning from maintenance works, which should see May exports being lower than in April. That should support the market," he added.

In lighter grades, Total bid for CPC at dated Brent minus 35 cents, slightly stronger than on Wednesday, but found no sellers.

CPC Blend loadings are set to fall by 19.7 percent on a daily basis versus the April loading plan, traders said.

The first version of the CPC Blend loading schedule for May showed volumes at 2.777 million tonnes versus 3.345 million in April.

"Higher (April) exports have come on the back of the near-completion of the first phase of expansion of the pipeline," JBC analysts said in a note.

"From a regional perspective, given that China-bound volumes will likely increase over the coming years, the expected uptick in CPC loadings will decrease the amount of crude that Kazakhstan sends to Russia that is blended into Urals."

"Over the longer-term this could deteriorate the quality of the flagship Russian blend as Kazakh crudes are of a better quality than West Siberian output," JBC said.

Russian state-controlled oil producer Gazprom Neft said it had received positive responses from Asian clients about the possibility of using euros as a settlement currency instead of the dollar.

Libya's state National Oil Corp lifted force majeure for the eastern port of Hariga at 1200 local time (1000 GMT) on Thursday, a statement from NOC said. The force majeure on the other recently re-opened port of Zueitina was still in place.

(Reporting by Dmitry Zhdannikov, editing by David Evans)

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

Tanker Trends

Stolt-Nielsen Q4 Profit Misses Forecast

Shipping firm Stolt-Nielsen reported fourth quarter earnings below forecasts on Thursday and said it was concerned about the outlook for the chemical tanker market,

Wartsila Sees Low Oil Price Impacting Shipping

CEO cautious on 2015 outlook. Finnish ship engine and power plant maker Wartsila reported a smaller-than-expected quarterly profit and warned lower crude prices

Shipping Pollution Will Skyrocket -Study

International freight volumes will grow fourfold by 2050 while the average length of haul will increase by 12 percent over that time, trends that will cause a spike

Finance

Matson Announces Quarterly Dividend

Matson, Inc. declared a first quarter dividend of $0.17 per common share, the company’s board of directors announced. The dividend will be paid on March 5, 2015

Kirby Reports Record Earnings

Kirby Corporation announced record net earnings of $68.1 million, or $1.19 per share, for the fourth quarter 2014 (ended December 31). The results bested 2013’s fourth quarter figures of $64.

Baltic Sea Freight Index Falls to Lowest Level Since 1986

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, spiralled downwards to its lowest level in nearly three

News

Matson Announces Quarterly Dividend

Matson, Inc. declared a first quarter dividend of $0.17 per common share, the company’s board of directors announced. The dividend will be paid on March 5, 2015

Maintenance Woes Led to Digby Ferry Grounding

Maintenance deficiencies and inadequate emergency procedures led to November 2013 grounding of Princess of Acadia in Digby, Nova Scotia    Maintenance deficiencies

Hogan Named VP at Newport News Shipbuilding

Rob Hogan has been appointed vice president of manufacturing at the Newport News Shipbuilding division of Huntington Ingalls Industries (HII), the company announced.

Logistics

Stolt-Nielsen Q4 Profit Misses Forecast

Shipping firm Stolt-Nielsen reported fourth quarter earnings below forecasts on Thursday and said it was concerned about the outlook for the chemical tanker market,

China Watching Greece After Port Sale Shelved

China is closely monitoring the policies of the new Greek government after Athens said this week it will stop the sale of a majority stake in Greece's biggest port,

Shell Eyes Arctic Drilling this Summer

Oil major Shell wants to revive its Arctic oil drilling programme this year after a near two-year suspension, angering environmentalists who say the risk of an oil spill is too high.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3457 sec (3 req/sec)