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Med crude-Urals falls further, Iraq raises OSP
Mon Jun 11, 2012 1:26pm EDT
LONDON, June 11 (Reuters) - Spot differentials for Russia's
main export grade, medium sour Urals, fell in the Mediterranean
on Monday as traders said the outlook for supplies remained
comfortable.
In the Platts window, Litasco sold an 80,000 tonne cargo in
the Mediterranean to Shell for June 21-25 delivery at dated
Brent minus $2.15, some 5 cents below Friday's deal and 20 cents
below earlier indications.
Vitol offered a 140,000 tonne cargo for June 21-25 delivery
at dated Brent minus $1.90, but no buying interest surfaced.
Traders said a rise in crude oil prices from Iraq's main
Basra terminal in July to all buyers did not reflect sentiment
in the market.
Iraq's State Oil Marketing Organisation (SOMO) raised Basra
Light crude for European customers to dated Brent minus $4.40
versus $4.50 below the benchmark last month.
"I think they were caught between the Saudis, who increased
prices, and Russian crude, which is falling," said one trader.
A second trader also attributed the price increase for Basra
Light to the Saudi move, noting that the lighter Kirkuk grade
OSP had in fact been cut.
"We at least buy the heavier grade to stretch bitumen
production and maybe fuel oil production," a second trader said,
listing reasons for demand prospects to be better for the
heavier grade.
Iranian and Syrian crude grades were preferred for bitumen
production but are no longer available to most Western companies
because of sanctions. Bitumen demand reaches a peak in the
summer.
In sweet grades, traders said a cargo of Azeri Light oil
exports from the Georgian port of Supsa was still available, and
the market was little changed from last week at around dated
Brent plus $2.75. Traders said the cargo was on offer at dated
Brent plus $3.00.
Exports of Kazakhstan's main crude oil grade, CPC Blend, is
expected to be 2.525 million tonnes, or about 635,000 barrels
per day, in July, according to a preliminary loading programme
seen by Reuters.
At least three cargoes of the light sweet crude, which is
trading at record lows of around dated Brent minus $3.50 as the
European market is flooded with rival grades, were still on
offer for June.
More light sweet crude is due to be offered soon. Traders
said they were waiting for Tunisian state-owned oil company Etap
to issue a July tender for light sweet Zarzaitine. The
announcement was expected last week, but traders said they were
still waiting for the company's July plans.
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Mon Jun 11, 2012 1:26pm EDT
LONDON, June 11 (Reuters) - Spot differentials for Russia's
main export grade, medium sour Urals, fell in the Mediterranean
on Monday as traders said the outlook for supplies remained
comfortable.
In the Platts window, Litasco sold an 80,000 tonne cargo in
the Mediterranean to Shell for June 21-25 delivery at dated
Brent minus $2.15, some 5 cents below Friday's deal and 20 cents
below earlier indications.
Vitol offered a 140,000 tonne cargo for June 21-25 delivery
at dated Brent minus $1.90, but no buying interest surfaced.
Traders said a rise in crude oil prices from Iraq's main
Basra terminal in July to all buyers did not reflect sentiment
in the market.
Iraq's State Oil Marketing Organisation (SOMO) raised Basra
Light crude for European customers to dated Brent minus $4.40
versus $4.50 below the benchmark last month.
"I think they were caught between the Saudis, who increased
prices, and Russian crude, which is falling," said one trader.
A second trader also attributed the price increase for Basra
Light to the Saudi move, noting that the lighter Kirkuk grade
OSP had in fact been cut.
"We at least buy the heavier grade to stretch bitumen
production and maybe fuel oil production," a second trader said,
listing reasons for demand prospects to be better for the
heavier grade.
Iranian and Syrian crude grades were preferred for bitumen
production but are no longer available to most Western companies
because of sanctions. Bitumen demand reaches a peak in the
summer.
In sweet grades, traders said a cargo of Azeri Light oil
exports from the Georgian port of Supsa was still available, and
the market was little changed from last week at around dated
Brent plus $2.75. Traders said the cargo was on offer at dated
Brent plus $3.00.
Exports of Kazakhstan's main crude oil grade, CPC Blend, is
expected to be 2.525 million tonnes, or about 635,000 barrels
per day, in July, according to a preliminary loading programme
seen by Reuters.
At least three cargoes of the light sweet crude, which is
trading at record lows of around dated Brent minus $3.50 as the
European market is flooded with rival grades, were still on
offer for June.
More light sweet crude is due to be offered soon. Traders
said they were waiting for Tunisian state-owned oil company Etap
to issue a July tender for light sweet Zarzaitine. The
announcement was expected last week, but traders said they were
still waiting for the company's July plans.
[You must be registered and logged in to see this link.]
