Med crude-CPC Blend offered firmer, October Urals oil trades at premium

By Reuters News

MOSCOW, Sep 21 (Reuters) - CPC Blend oil loading in October was offered at firmer levels during the afternoon trading session, while Urals oil cargoes for loading in October were offered actively in the market, traders said.

Demand for CPC Blend oil and other regional grades remained firm due to ongoing disruptions to the Middle East oil supplies, though on Monday traders expressed expectations that oil supply disruptions may ease.

Oil prices eased on Monday to their lowest level in 12 days, as investors eyed a partial recovery in shipments from Saudi Arabia and hoped for diplomatic progress on the Iran war due to this week's UN meeting.

Russia's major Moscow refinery, owned by Gazprom Neft, has halted crude oil processing after fires broke out at its primary crude distillation units following a Ukrainian drone attack on September 20, three industry sources said. Lower refinery runs will lead to higher crude oil availability, traders said, expecting Urals oil exports in October to be ample.

Urals oil cargoes for loading in October continued to trade at a premium to Brent in both main markets for the grade, China and India, traders said. They added that the main issue was high freight cost that limited sellers' margin.

PLATTS WINDOW

  • Trading firm Vitol offered a 135,000-ton cargo of CPC Blend oil loading on October 11 to 15 at dated Brent plus $4.95 per barrel, above recent estimates, but failed to find a buyer and withdrew.

  • There were no bids or offers on Thursday for Urals or Azeri BTC, traders said.

NEWS

  • Russia will have a budget deficit equal to 3% of gross domestic product in 2026, almost double the plan and more than last year, Finance Minister Anton Siluanov said on Monday as the government prepares to review the draft of the 2027 budget this week.

  • Diesel prices have rallied in Europe and the United States to record highs as wars in Iran and Ukraine sharply cut exports from some of the biggest producers such as Russia, Saudi Arabia and the United Arab Emirates, with little options to prevent further gains.

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