Med crude-Urals diffs down in Baltic, CPC Blend ease

MOSCOW: Urals differentials in northwest Europe eased against dated Brent on Monday as remaining June cargoes traded at wider discounts, while CPC Blend differentials also were under pressure due to ample supply.

The Urals crude oil loading plan from Russia's Baltic ports for the first five days of July which was issued late on Friday showed 700,000 tonnes of crude oil to be loaded from Primorsk and just 200,000 tonnes from Ust-Luga.

Exports from Ust-Luga port are set to decline sharply in the third quarter of 2019, according to Russia's export and transit quarterly schedule.

PLATTS WINDOW

In the Platts window Vitol purchased 100,000 tonnes of Urals loading from Primorsk between June 27-July 1 from Glencore at dated Brent minus $2.30 a barrel, below recent estimates.

At the same time Trafigura offered a Urals cargo loading from Primorsk between June 20-July 4 at dated Brent minus $2 per barrel, but failed to attract buying interest.

Gunvor bid for a Urals cargo loading over July 4-8 from Primorsk or Ust-Luga over July 4-8 at dated Brent minus $2.15 per barrel, but no sellers stepped forward.

On Caspian grades, Total purchased 85,000 tonnes of CPC Blend for loading from Yuzhnaya Ozeryevka terminal over July 7-11 at dated Brent $2.65 per barrel.

There were no bids or offers for Urals ex-Novorossiisk or Azeri BTC crude oil in the Platts window on Monday, traders said.

TENDER

Russia's Surgutneftegaz issued a spot tender to sell a Urals cargo for loading from Ust-Luga on July 3-4, traders said.

The tender closes on June 18 at 1400 Moscow time (1100 GMT).

NEWS

The PCK oil refinery at Schwedt  in eastern Germany had started receiving clean Russian crude oil via the Druzhba pipeline, oil industry group MWV said on Monday, after contamination issues had been disrupting flows since April.

Iran's oil minister met his Russian counterpart in Iran on Monday, industry sources said, raising hopes of progress in resolving an impasse over when OPEC and its allies will hold their next policy gathering.