Russian Urals exports to China fall 50% for June 1-19 m/m--traders, Eikon
MOSCOW, June 19 (Reuters) -Russian Urals crude oil cargoes loading from Russian ports for delivery to China fell by almost 50% from June 1-19, compared to the same period of May, Refinitiv Eikon data showed and traders said.
Urals loadings from Russian Baltic and Black Sea ports bound for China over June 1-19 averaged some 212,000 barrels per day (bpd), down from 414,000 bpd over the same period in May, including Urals shipments to China from STS facilities, Refinitiv Eikon data and Reuters calculations showed.
The fall in June-loading Urals supplies to China was due to weaker demand from Chinese independent refiners that held back from buying due to a shortage of crude import quotas, according to Viktor Katona, lead crude analyst at Kpler.
"In May, when June-loading cargoes of Urals were trading, none of the private refineries in China knew the volumes of their import quotas. Having no quotas, they waited, and now they are able to buy July-loading barrels," he said.
In mid-June, China issued a third batch of 2023 crude oil import quotas, raising the total volume in the first half of this year to 194.1 million tonnes, up 20% from the same period last year.
Lower Urals supplies to China in June may have been due to more attractive prices for Iranian crude, two traders said.
Urals oil differentials to Brent have been firming gradually over spring months amid good demand from Asian buyers, making it more expensive compared to discounted Iranian barrels.
Nevertheless more OPEC+ cuts announced in July and higher prices for Middle Eastern barrels, including Iranian, support demand for Urals loading next month, traders said.
"I see rising demand for July-loading Russian crude in China," a trader in the Russian oil market said.
The trading cycle for Urals oil cargoes loading in July started last week.
Reporting by Reuters; Editing by Sharon Singleton
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
