LONDON: Russian Urals crude weakened on Wednesday after traders offered prompt cargoes following Russia's decision to press ahead with supply cuts to neighbouring Belarus and supply export markets instead.
Russia decided to slash oil supplies to Belarus by around 40 percent in September-December following a spat over potash trading in August. Moscow then rolled back its promised cuts for September..
On Wednesday, Russian Energy Minister said there would be no oil supply increases in October-December and Belarus would get 40 percent less oil or 3.1 million tonnes.
Traders said that as a result of those cuts to Belarus, Eni offered a previously unexpected 80,000-tonne Urals cargo for Oct. 21-25 delivery from the Black Sea port of Novorossiisk.
Eni sold the cargo to Itochu in the Platts window at dated Brent minus 90 cents, some 20 cents weaker than previous price estimates, traders said.
Oil firm Surgut also tendered to sell an unexpected 100,000 tonnes cargo of Urals from the Baltic Sea port of Ust-Luga for Oct. 27-28 delivery.
The tender was awarded to Shell at around dated Brent minus $1.10-$1.20, a levels that most traders described as very strong.
Also in the Baltic, Vitol offered a Urals cargo for Oct. 22-26 delivery at dated Brent minus $1.45, some 15 cents weaker than previous price estimates, but found no buyers.
The Caspian pipeline CPC will not ship oil from the newly launched Kashagan oilfield in Kazakhstan in October, increasing Tengiz blend shipments instead, traders said on Wednesday, in a new blow for the multi-billion project.
Initially, CPC planned to ship 138,500 tonnes of Kashagan oil this month. But the traders said there would be no flows from the field via the pipeline in October after an accident in late September.
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