MOSCOW: Urals differentials strengthened further in the Mediterranean as buyers showed interest in the grade amid lower supplies in July compared to June. In the Platts window, Litasco bid for 80,000 tonnes of Urals loading on July 17-21 up to a discount of $1.70 a barrel to BFOE, traders said, but found no sellers.
They also said Litasco had recently bought 80,000 tonnes of Urals at a discount of $1.70-1.80 a barrel to BFOE, but this could not be confirmed. In northwest Europe, Urals differentials remained unchanged despite active trading as buyers and sellers were evenly matched and no significant factors emerged to influence prices.
However, traders said it would be unlikely for Urals differentials to strengthen in the region, so the best outcome for July-loading Urals from Baltic ports would be to preserve current price levels.
In the Platts window, Total offered 100,000 tonnes of Urals loading from Baltic ports on July 17-21 down to a discount of $2.40 a barrel to BFOE, at which level Litasco took the offer.
On the other hand, Surgutneftegaz awarded a tender to sell 500,000 tonnes of Urals loading in July around a discount of $2.50 a barrel to BFOE.
Overall, price levels for Urals cargoes in northwest Europe was around discount of $2.40-2.50 a barrel to BFOE.
Premiums for Azeri light continued to rise. Traders said offers of the grade were around plus $1.70 to BFOE for July-loading cargoes. Demand for sweet grades in the Mediterranean returned as margins improved and the impact of strikes in France's oil sector waned.
TENDERS
Surgutneftegaz awarded a tender to sell 500,000 tonnes of Urals loading in July to Trafigura, Litasco, Total and Statoil.
Poland's PKN Orlen was thought to have awarded a tender to buy 100,000 tonnes of Urals loading from Primorsk or Ust-Luga on July 8-12, traders said.
The results had yet to emerge fully.
Turkey's Tupras bought 140,000 tonnes of Urals for delivery to Turkish ports on July 10-25 from Vitol.
Kazmunaigas closed a tender to sell CPC Blend for loading in July-December 2016.
The tender results will be announced to participants not later than July 4.
Croatia's Ina awarded a tender to buy 85,000 tonnes of either Azeri light, Western Desert or Siberian light. The results were slow to emerge.
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