Lower freight rates, narrowing discounts versus global
benchmarks and Brent prices above $85 per barrel nudged the
daily price of Urals above the cap earlier in April.
China's increased purchases of April-loading Urals and
imports of the grade loading from Russia's Baltic and Black Sea
ports this month may hit an 11-month high, supporting prices,
traders said and Refinitiv Eikon data showed.
(Reporting by Nidhi Verma and Reuters reporters; Editing by
Kirsten Donovan)
NEW DELHI/MOSCOW, April 28 (Reuters) - Urals crude oil
differentials for May-loading cargoes for delivery to Indian
ports narrowed amid rising competition for discounted barrels in
Asia, according to three traders.
Meanwhile, Reuters calculations show FOB prices for the
grade fell below the Western price cap of $60 per barrel on
weaker Brent prices, which are set for a fourth straight monthly
fall.
Urals discounts narrowed to $10-$12 a barrel to dated Brent
on a delivered ex-ship (DES) basis in Indian ports, from minus
$13 a barrel for April loading cargoes, according to the three
traders. Shipping costs from Baltic ports to India stood at
around $7.8 million, another trader said.
"May-loading parcels were offered around dated Brent minus
$12 a barrel or minus $11 a barrel to Dubai," a source with an
Indian refiner which is a regular buyer of Russian oil told
Reuters. Two other Indian refiners said the discount to Brent is
about $10/barrel.
Russia's largest oil producer Rosneft and India's
top refiner Indian Oil Corp agreed to use the
Asia-focused Dubai oil price benchmark in their latest deal.
The Urals price on a free on board (FOB) basis in Baltic
ports, allowing about $2 per barrel of additional transport
costs, has fallen below $60 per barrel for cargoes loading in
May, Reuters calculations show.
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