GO
Loading...

Med Crude-Urals strengthens in Surgut tender

LONDON, Oct 3 (Reuters) - Russian Urals crude strengthened a notch on Wednesday as local producers placed their remaining cargoes from the October programme on the market.

Oil firm Surgut was believed to have awarded its tender for three cargoes from the Baltic port of Primork to Shell, Repsol and Litasco with prices of the prompt cargo pegged at around dated Brent minus $1.7 per barrel.

Later cargoes were believed to be sold at dated Brent minus $1.50, some 20 cents stronger than prices earlier this week.

Traders said some strengthening was also visible in the Mediterranean market with one Surgut awarding an 80,000-tonne cargo at around dated Brent minus $1.50, also some 30 cents stronger.

Traders said the market might have found equilibrium and they did not expect a major weakening or strengthening in the next few days.

"The market could weaken a bit but I think the bottom is not far," one trader in the Mediterranean said.

In the Platts window, Gunvor bid for an Oct 22-26 80,000 tonnes Urals cargo in the Mediterranean at dated Brent minus $2.10, traders said but the bid was believed to be too weak to attract interest.

Russian and Kazakh oil exports in the Black Sea via the Caspian Pipeline Consortium (CPC) are set to decline by 14 percent in October, month-on-month, a schedule seen by Reuters showed on Wednesday.

The pipeline group is expected to ship an average 76,000 tonnes a day this month, down from 87,705 tonnes per day in September when exports rose 11.5 percent.

The reason for decline was not immediately known, but the group usually cuts crude exports due to maintenance work.

Top global oil exporter Saudi Arabia has raised its Arab Light crude price for Asian buyers in November by 90 cents to Oman/Dubai average plus $2.75 a barrel.

The Arab Light OSP to the United States has been raised by 30 cents to ASCI plus $1.25 a barrel, while prices of the same crude to Northwest Europe were cut by 15 cents to ICE Bwave minus $1.75 a barrel.

(Reporting by Dmitry Zhdannikov and Gleb Gorodyankin; editing by Keiron Henerson)

((dmitri.zhdannikov@thomsonreuters.com)(+44 207 542 38 13))

((For a database of oil supply and demand fundamentals upstream and downstream, Reuters subscribers can click on

((MED CRUDE OIL DIFFERENTIAL AND OUTRIGHT PRICE ASSESSMENTS:

Urals Med Urals NWE Kirkuk Siberian Light Saharan Blend CPC Blend Azeri CRUDE ARBITRAGE STORIES CRUDE OIL TRADES NORTH SEA CRUDE REPORT AFRICAN CRUDE REPORT

Russia oil export schedule, monthly

Russia oil exports, table, monthly

Russia oil output by company, monthly

Russia oil output/exports, monthly

Russia product export, monthly

energy speed guide crude speed guide NYMEX crude ICE crude OPEC North Sea crude oil oil products derivatives European products Latest ICE Latest NYMEX )) ))

Keywords: MARKETS MEDITERRANEAN/CRUDE