Light grades under pressure from ample supplies, low demand

Light grades remained under pressure in the Middle East crude market especially after spot values of Russian grades slipped further to the lowest in years, hurt by ample supplies and lower demand in Asia. Asian refiners are replacing Middle East and Russian light crude with record arbitrage volumes from Kazakhstan, the North Sea and the United States. Peak refinery maintenance activities in the second quarter have also reduced Asia's crude demand.
Murban cargoes traded at discounts between 20 and 35 cents a barrel and some sellers still have cargoes on hand, traders said. No trades were heard for Das and Qatar Land. A May-loading cargo of Russian Sokol crude, which rivals Murban, was traded at a premium of $1.60-$1.70 a barrel, down 20-30 cents from earlier deals, traders said. The buyer and seller were not immediately known.