Monday, August 21, 2017

Urals oil traders cease trading as exports set to decline in May

Traders in the Russian Urals crude oil market ceased trading activities on Tuesday after a dip in anticipated May exports.

Several domestic refineries are set to end scheduled maintenance at the beginning of May, causing an abundance of Urals product. As a result, market prices in the Urals are expected to strengthen by $0.30 to $0.40 per barrel in May. The current value of a barrel in the Urals crude market is Brent minus $1, Marine Link reports.

"I don't think the May Urals program will be very short, but it will certainly be shorter than April," one trader in the Urals market said, according to Marine Link.

Moreover, a potential physical deal in the Baltic market may yield a trading price of Brent minus $1.30 per barrel. However, the deal has not yet been confirmed.