Urals Weakens in Med, Baltic as Sept Cargoes Emerge

Russian Urals crude weakened further on Monday in the Mediterranean and the Baltic under pressure from abundant supplies and as oil firms began to tender fresh September supplies.

 

In the Platts window, Tenergy sold a cross-month Urals cargo in the Mediterranean to Eni at dated Brent minus $1 per barrel, some 20 cents weaker than previous price estimates, traders said.

 

In the Baltic, Glencore (GLCNF) offered a cross-month cargo at dated Brent minus $1.60, some 10 cents weaker than previous price estimates, but found no buyers, traders said.

 

Azeri was also under pressure as a cargo was heard having changed hands at levels weaker than dated Brent plus $2 per barrel.

 

"Supplies are plentiful. Fresh Urals volumes are being actively offered in the oversupplied market and that is dragging down other grades," said a trader in the Mediterranean.

 

Russia's oil export duty is expected to fall 18 percent month-on-month to $109.2 per tonne in September due to lower oil prices, calculations by the Finance Ministry showed.

 

That will further encourage oil exports from Russia combined with a spike in maintenance works next month.

 

Surgut tendered to sell three cargoes of Urals for loading from Primorsk and Ust-Luga in September, industry sources said.

 

The company offered two 100,000-tonne Urals shipments from Primorsk for September 3-4 and 4-5. From Ust-Luga, Surgut offered one vessel for loading on September 4-5. The tender will close on Tuesday.

 

For early Russian loading dates, see

 

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