Urals crude oil differentials kept stable on Friday, while prices for Caspian oil grades have soared this week, as traders look for alternatives in an increasingly tight market following the suspension of oil production in Libya.

Libya’s National Oil Corporation said on Friday that recent oilfield closures have caused the loss of approximately 63% of the country’s total oil production, as a conflict between rival eastern and western factions continues.

Discounts for Kazakh CPC Blend narrowed to less than 30 cents per barrel to dated Brent, the traders said. The grade normally trades at wider discount to the benchmark, reaching close to minus $2 per barrel earlier this month.

Two of the traders said that there were several offers of CPC Blend oil cargoes at a premium to dated Brent, but no deals have yet been heard at such levels.

Premiums for Azeri BTC firmed above $4 per barrel and were moving towards $4.50 from around $2 per barrel early this month, the traders said.

PLATTS WINDOW

There were no bids or offers for Urals, Azeri BTC or CPC Blend in the Platts window on Friday.

NEWS

Ukraine will continue to meet its obligations to transit Russian oil to Europe, a presidential aide said on Friday after earlier suggesting it could halt supplies via the Druzhba pipeline next year.
Source: Reuters (Reporting by Reuters; Editing by Louise Heavens)