Russian crude losing out as Iranian oil returns to Europe: Bloomberg

The return of Iranian oil to the international market is hurting Russia`s main crude grade, forcing it to trade at the biggest discount in two years, according to Bloomberg.
The discount of Russia`s Urals grade in the Mediterranean to global benchmark Dated Brent widened to $2.40 a barrel, according to traders monitoring the Platts window. That`s the lowest since June 2014. Vitol offered the grade again on Friday at smaller discounts. It didn`t find a buyer, Bloomberg reports.
Urals crude, which is similar to Iran`s flagship blend, became the main beneficiary when the Persian nation was barred from selling oil in Europe in 2012 because of its nuclear program. Since those sanctions were lifted in January, the Russian grade has suffered, according to four traders familiar with the market.
”Iranian exports have been impressive,” giving refiners in Europe a wider choice of supply, Abhishek Deshpande, an analyst at Natixis SA said by e-mail.
”This development for Urals is natural when Iran ramps up at the same time as there are strikes in several European refineries, hampering physical crude demand,” Torbjoern Kjus, chief oil analyst at DNB Markets, said by e-mail.
Three oil refineries in France have yet to restart completely after a series of strikes, according to Total SA, which operates five plants in the country.
Iran has wasted no time in trying to regain market share, according to the International Energy Agency. Exports of crude last month reached 2.1 million barrels a day, almost pre-sanction levels, the agency said on June 14. Before sanctions were tightened four years ago, Iran shipped 2.2 million barrels abroad, it said.
Flow of Iranian crude grades to countries in the European Union was 355,000 barrels a day in May, compared with 330,000 in April, according to tanker-tracking data compiled by Bloomberg.
”Iran has moved swiftly to reclaim its European customers,” the IEA said.

Avatar photo

UaPositon

An independent media focused on Ukraine.
Follow us on social media:
Facebook
Twitter
Instagram

Submit a Comment

Your email address will not be published.

Share This

Share this post with your friends!