Russian Urals crude oil differentials to dated Brent widened slightly amid expectations of higher supply after the OPEC+ group decided on an output hike, traders said on Friday.
Discounts for Russian Urals oil cargoes loading in June widened slightly to minus $2.70-3.10 a barrel to dated Brent on a DES (delivered ex ship) basis at Indian ports, compared to a range of $2.50-3.00 per barrel for May cargoes, the traders said.
The OPEC+ group of countries’ decision to accelerate production hikes in May is expected to increase oil supply this year, increasing competition to Russian oil in Asia, they added.
At the same time traders said demand for Russian Urals oil in India remained high, while some sellers already offered cargoes loading in July, well in advance to the actual loading.
PLATTS WINDOW
Azeri BTC: Socar sold a cargo of Azeri BTC with June 8-12 dates to Eni at dated Brent plus $1.75 CIF Augusta.
No bids or offers were shown for Urals, or CPC Blend in the Platts window on Friday.
NEWS
China has emerged as the top customer for Canadian oil shipped on the expanded Trans Mountain pipeline, ship tracking data showed, as a U.S. trade war has shifted crude flows in the year since the pipeline started operating.
Source: Reuters