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 Today


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

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

Tanker Trends

Navig8 Acquires Chemical Tanker from STX

Navig8 Chemical Tankers Inc (the “Company”) (N-OTC: CHEMS), an international shipping company focused on the transportation of chemicals, today announced that it

Turkey’s Role for the Tanker Market

Even though the coup attempt in Turkey  failed and the transportation situation normalized quickly thereafter, Poten & Partners take a look at the importance of Turkey to the tanker market.

Libya's PFG to Lift Terminal Blockades

Petroleum Facilities Guard has blocked terminals for months. Ras Lanuf, Es Sider terminals damaged by fighting. Libya's Petroleum Facilities Guard (PFG) will

Finance

Turkey’s Role for the Tanker Market

Even though the coup attempt in Turkey  failed and the transportation situation normalized quickly thereafter, Poten & Partners take a look at the importance of Turkey to the tanker market.

China’s One Belt, One Road: Will it Reshape Global Trade?

The future of trade in Asia could depend heavily on what becomes of China’s expansive One Belt, One Road initiative, which calls for massive investment in and

IOC Mulls Buying GSPC's Stake in Mundra Terminal

Indian Oil Corporation (IOC), the country's largest oil company,  is in talks to buy debt-laden Gujarat State Petroleum Corp’s (GSPC) stake in the under-construction Rs.

News

Los Angeles Port Pushes for Valero Oil Terminal Improvements Project

The Port of Los Angeles has released an Initial Study/Notice of Preparation (IS/NOP) — the first step in the Environmental Impact Report (EIR) process —

Eni Cancels Vessel Deal with Viking Supply Ships

Viking Supply Ships A/S (VSS) has received an early termination notice of the contract for the Ice-class 1A AHTS “Njord Viking”. The vessel has been working for

B&G Software Upgrade for Zeus2 and Vulcan Chartplotter

B&G, the world’s leading sailing navigation and instrument specialist has upgraded its latest software for the full range of Zeus2 and Vulcan chartplotters. The

Logistics

Turkey’s Role for the Tanker Market

Even though the coup attempt in Turkey  failed and the transportation situation normalized quickly thereafter, Poten & Partners take a look at the importance of Turkey to the tanker market.

China’s One Belt, One Road: Will it Reshape Global Trade?

The future of trade in Asia could depend heavily on what becomes of China’s expansive One Belt, One Road initiative, which calls for massive investment in and

Global Fleet Growth: A More Mature Trend?

The supply of ships into the fleet is a key determinant of vessel earnings across the shipping sectors, and world fleet growth is closely followed by everyone in the maritime industry,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.1097 sec (9 req/sec)