Sunday, August 20, 2017

Russian Urals crude trades at highest amount in nearly three weeks

On Wednesday, Russian Urals crude oil traded at $112 per barrel, its lowest amount in almost three weeks.

Despite the minor drop in trading price, analysts maintain that trade prices of Urals crude has stayed relatively stable in the last two months in the wake of a recovering in refining margins on the back of a decline in Brent prices, Reuters reports.

In the Platts window, Russian oil group Lukoil made a bid for a 88,100 ton cargo of Urals crude for delivery between July 17-21, at a dated Brent value of minus $1.65 per barrel, a slightly weaker trading price than previously estimated. However, Lukoil was unsuccessfully able to sell its cargo at that price.

Meanwhile, Unipec had offered a larger Suezmax for delivery between July 12-16 at a dated Brent price of minus $1.45 per barrel, but was also unable to find a buyer, according to Reuters.

"The flat price has fallen significantly so Urals shall be supported," one trader of Urals crude said, Reuters reports.

Scheduled exports of Kazakh CPC Blend, however, have been raised to 3.74 tons for the month of July.

As a whole, however, Russian oil and gas condensate output has reached an upward trend since June, rising 0.2 percent from May to reach 10.55 million barrels a day. Analysts attribute this increase in production to both Lukoil and Bashneft, according to Reuters.