Urals Stronger in Baltic Due to Low Volumes

Russian Urals crude strengthened on Friday after a loading programme showed an expected drop in exports from the Baltic in May.

 

In the Platts window, Trafigura sold a Urals cargo in the Baltic to Litasco for May 10-14 delivery at dated Brent minus $1.05 a barrel, some 40 cents stronger than previous price estimates.

 

Exports from the Baltic Sea port of Ust-Luga are seen falling to 2 million tonnes in May, down from 2.334 million tonnes in April. The loading schedule from neighbouring Primorsk was not yet available on Friday.

 

There was no deals in Urals in the Black Sea, where the grade has strengthened in the past days because of very low loadings during the first 10 days of May.

 

However, exports are expected to jump to 0.82 million tonnes during May 10-20 and a similar amount during May 21-31 from as low as 0.365 million during the first 10 days of May.

 

As a result, exports from Novorossiisk will decrease by just 4 percent in the whole of May to 2.01 million tonnes, according to a new preliminary schedule released on Friday.

 

The increase in volumes should help weaken the grade next week after it strengthened steeply this week, traders said.

 

In light grades, Azeri Socar sold cargoes of Azeri Light to Vitol and BP at dated Brent plus $1.30 and 1.35 respectively, traders said.

 

Iraq's State Oil Marketing Organisation (SOMO) has informed its partners they can start loading Basra Heavy crude from May, instead of its flagship light grade, two sources with direct knowledge of the matter said on Friday.