MOSCOW: Urals differentials fell in northwest Europe on a bigger than expected export plan from Baltic ports for the first 12 days of June, traders said.
The Urals loading plan from Baltic ports for June 1-12 showed 2.9 million tonnes compared to 2.7 million tonnes in the same period in May.
Industry sources said maintenance in Primorsk was planned for June 12-15, which may decrease monthly export volumes slightly, but Russian oil companies are not eager to increase throughputs due to the low margins of refineries, so traders still expect ample Urals exports.
In the Platts window, Vitol sold 100,000 tonnes of Urals loading from Baltic ports on June 10-14 to Shell at a discount of $2.90 a barrel to BFOE, traders said. The deal was more than 30 cents lower than the results of Surgutneftegaz's Urals tender awarded earlier this week.
Total also offered 100,000 tonnes of Urals loading from Baltic ports on May 30-June 3 down to a discount of $2.90 a barrel to BFOE, but failed to find a buyer, traders said. The offer was 16 cents weaker than its lowest level on Thursday.
Surgutneftegaz issued a tender to sell another 400,000 tonnes of June Urals loading from Baltic ports.
The tender closes on May 23. In the Mediterranean, Urals differentials remained unchanged as the loading plan from Novorossiysk was little changed.
In the Platts window, Shell bid for 80,000 tonnes of Urals loading on June 8-12 at a discount of $1.95 a barrel to BFOE and Vitol offered 80,000 tonnes of Urals loading on May 30-June 3 at the same discount, but no deal was agreed due to big difference in dates, traders said.
Zarubezhneft opened a tender to buy 80,000 tonnes of Urals for delivery to the port of Omisalji on June 21-25 to supply its Brod refinery, the company said on its website.
The tender closes on May 24 at 1700 Moscow time (1400 GMT).
Discounts for CPC Blend widened to BFOE due to the availability of volumes loading in early June and weak refining margins.
In the Platts window, Vitol offered 85,000 tonnes of CPC Blend loading on May 30-June 3 at a discount down to $0.65 a barrel to BFOE, traders said.
This level was about 40 cents lower than recent estimates. Italy's Eni awarded its tender to sell CPC Blend loading in July-December this year to Glencore, traders said.
The tender closed on May 19. Premiums for Azeri light were also seen a bit weaker: a cargo loading in mid-June changed hands at a premium of $2.10 a barrel to BFOE.
The level was some 10-15 cents lower than recent estimates.
There were no bids or offers for CPC Blend in the Platts window.
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