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Med Crude-Weak margins dent sour, sweet differentials
March 1, 2012 / 6:52 PM / 6 years ago

Med Crude-Weak margins dent sour, sweet differentials

 LONDON, March 1 (Reuters) - Differentials on crude oil
fell across Russian sour and Caspian sweet crude on Thursday due
to further weakening of refining margins in the region, traders
said.	
 "If you are an oil refiner, there is no joy now," a trader
with a refiner said. "At this moment, we are not looking for
spot cargoes now."	
 Another trader pointed out that the fall in Urals crude came
despite the cut off of some Iranian sour crude and it highlights
the weakness of European demand.	
 Concerns over Iran, however, has been one of the factors
that have been sustaining oil futures prices high. ICE Brent
 was trading $2.68 up at $125.34 a barre by 1845 GMT.	
 Trades were active in tenders.	
 	
 URALS	
 * Litasco sold 100,000 tonnes of Russian Urals crude for
March 11-15 loading at Dated Brent minus $1.30 a barrel in
Northwest Europe.	
 * The activity in the Mediterranean was limited, while the
differential was seen above that in Northwest Europe.	
 	
 SWEET	
 * Socar Trading offered 600,000 barrels of Azeri Light at
Dated plus $3.50 a barrel. Last week, Azeri Light was assessed
above dated plus $4 a barrel.	
 * "That's the level I think Azeri is now. Distillates are
weakening," a trader said.	
 * Shell offered CPC Blend for March 16-20 loading at dated
benchmark minus 45 cents a barrel.	
 	
 TENDERS	
 * Many tenders closed on Thursday and some results of
Russian Urals crude tenders started emerging.	
 * Surgutneftegaz close its tender to sell Urals to
be loaded from the Baltic port of Primorsk in March.	
 * The loading days are March 18-19, 21-22, 24-25 and 25-26.	
 * Traders said cargoes were sold to majors and one trading
house in a rage of dated minus 60 and 80 cents. This was not
confirmed.	
 * Traders said Rosneft awarded its tender to sell March
loading Urals to two majors. This was not confirmed.	
 * Egyptian state oil firm EGPC closed a tender to buy sour
crude for May-December. Details of the results have not emerged.	
	
 (Reporting by Ikuko Kurahone; )	
 	
 

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