*
At least 0.7 mln T seen set for China in Feb (0.5 mln in
Jan)
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9% of Feb loadings from western ports set for China (6% in
Jan)
MOSCOW, Feb 28 (Reuters) - Urals crude exports to China from Russia's Western ports rose in February month on month on lower freight costs and rising demand, Reuters sources said. The portion of shipments of Urals from Primorsk, Ust-Luga and Novorossiisk to China in February will also rise, to 9% ?f crude loadings from these ports from 6% in January, according to traders, shippers, Refinitiv Eikon data and Reuters calculations. In February Russian ports will load at least 0.7 million tonnes of Urals for shipment to China, up from 0.5 million tonnes in January, while final numbers for February will likely rise. Urals supplies to ship-to-ship (STS) transfer points for further delivery to Asia in February will reach at least 1.5 million tonnes, down from 2.0 million tonnes in January, though final data for February has yet to be clarified. As of February 28, Reuters was not able to verify final destinations for some 2.9 million tonnes of crude planned for loading from Russia's Western ports this month. The rise in Urals shipments to China comes amid a recovery in shipments from Novorossiisk. Urals loadings from Novorossiisk to China resumed in December after a 6-month break but fell to zero in January. Rosneft and Gazpromneft have sent 140.000 tonnes of Urals from Novorossiisk to China in February, according to traders and shipping data.
Direct shipments from the port to China in February will likely fall below initial targets, as Novorossiisk will fail to fulfil the February loading plan in full amid weather related delays, traders said. Rising competition between key buyers - China and India - supports prices for the grade. Russia's oil exports revenue is set to rise in March as falling freight rates and strong demand pushes Russian oil prices towards a $60 per barrel Western price cap. (Editing by Jason Neely)
