Saturday, May 18, 2024
Latest News
Debt, equity holders approve merger of IDFC with IDFC First Bank Disney+ K-drama Uncle Samsik: Song Kang-ho makes K-drama debut in evocative political series set after the Korean war India, UK review implementation of 10-year roadmap Robbed: Pilgrim robbed of 12 sovereigns of gold | Coimbatore News From authoritative to permissive parenting: Which parenting style wins? Will 6G tech deliver where ‘overhyped’ 5G didn’t? An expert sees a holographic future Premier League title race could be settled on Sunday after Kitchee stop rot to prolong Lee Man’s wait Russia Presses Attacks in Northeast Ukraine, Seeking Buffer Zone on Border Slovak prime minister still in serious condition as shooting suspect appears in court Elephant Kills Man: Elephant kills man | Bhubaneswar News EgyptAir plans to increase frequency of its Delhi-Cairo flights, make it a daily Coffee shop Land to Sea in New York is a love letter to co-founders’ Asian-American upbringing – and a space for all Jitesh Sharma to lead Punjab Kings in their final game of the season | Cricket News Sample Seed pitch deck: Goodcarbon's $5.5m deck Do I Owe Taxes on a Retirement Account Distribution? Namaste away: Rangers bar yoga classes at cliffside San Diego park Young Voters: To woo voters, parties aim to catch ’em young | Allahabad News China property: Beijing’s stimulus plan needs more time, money and policy support to resolve long-standing housing crisis 'I said I would bat anywhere, just give me a chance to play': Virat Kohli recalls how Suresh Raina's recommendation worked for him | Cricket News Lack of AI Is Reducing India Software Stocks’ Heft as Tech Bets In Rio de Janeiro, young women in a favela hope to overcome slum violence to play in 2027 Women’s World Cup House GOP infighting fuels bitter primary election season Airport: Airport’s Terminal 2 gets five new aircraft parking stands | Ahmedabad News India, UK reaffirm FTA commitment at strategic dialogue Studio Nicholson founder Nick Wakeman on perfecting modern nostalgia at her London-based fashion label Queen of the Book Club Biden called out over past desegregation remarks Angry mob sets Bihar police station on fire after man, minor wife die by suicide in custody; ASP among 9 cops injured | Patna News 8 ways to boost energy and productivity and be less tired – a Malaysian-Chinese life coach and author’s advice Lionel Messi’s Barcelona napkin, used to promise his first contract with club at age 13, sells for HK$7.6m at auction
HomeBusinessRussia sends more Arctic oil to China, India after sanctions

Russia sends more Arctic oil to China, India after sanctions


SINGAPORE/NEW DELHI: Russia is sending more crude oil produced in the Arctic region to China and India, and at steeper discounts, after Europe slammed its doors shut on Russian supplies last month, trade sources and data show.
Arctic grades Arco, Arco/Novy Port and Varandey do not normally head East but are now finding new homes further afield after the European Union, G7 nations and Australia introduced a price cap on Russian oil in December, on top of an EU embargo on Russian crude by sea. Sellers are selling the Russian crudes at bigger discounts as they absorb higher shipping costs.
“All these Arctic crudes usually go to the EU but now they have to go elsewhere,” a Singapore-based trader said.
Arctic crude exports to India have steadily increased since May, with a record 6.67 million barrels loaded in November and 4.1 million barrels in December, Refinitiv data showed. Most of the supplies were Arco and Arco/Novy Port produced at fields operated by Gazprom Neft.
Arco crude is a heavy sour grade from the Prirazlomnoye field while the better quality Novy Port grade, from the Novoportovskoye field, is a medium to light sweet crude.
Last week, India imported its first Varandey crude cargo that loaded in Murmansk port in late November, according to two sources and Refinitiv data.
The 900,000-barrel cargo onboard tanker Bear Alcor that sailed via Europe, the Mediterranean and the Suez Canal, was discharged at Cochin port in Kerala on Dec. 27 for refiner Bharat Petroleum Corp Ltd. The other two 600,000-barrel cargoes that loaded in November were discharged at Rotterdam in the Netherlands. It was not clear which companies bought these cargoes.
Russia has reasonably good volumes of other grades as well, which are being offered to Indian buyers, one of the sources at an Indian refiner said.
The gross product margins from processing grades such as Arco and Novy Port bought on a delivered basis are more than $10 a barrel higher compared with similar quality U.S. crudes such as Mars and West Texas Intermediate, he added.
Bharat Petroleum did not respond to a request for comments.
Varandey crude, produced from the Timan-Pechora oil fields operated by Lukoil, has an API gravity of around 37 degrees and contains 0.4% sulphur. Its quality is similar to ESPO Blend, a Far East grade favoured by China’s independent refineries, known as teapots.
Varandey crude is easy for Indian refiners to process although future purchases would depend on price levels, the second source said.
“Now India and China are their major homes,” he said.
At least three oil tankers that loaded Arctic crude in Murmansk port are now heading to China, Refinitiv data showed.
One of the tankers, Nikolay Zuyev, carrying about 780,000 barrels of crude, is expected to arrive on Jan. 18 but it still does not have a specific destination. Another two tankers – NS Bravo and Gladiator – carrying about 900,000 barrels of crude each – are expected to arrive at the Chinese eastern city of Qingdao on Feb. 3 and 15, respectively, the data showed.
Refinitiv listed the grades carried by these ships as Arco crude although one Chinese trader said there could be Varandey crude onboard. It was not clear which refiners bought the cargoes.
Another trader said Arco crude had been offered to Chinese buyers at $9 a barrel below ICE Brent on a delivered ex-ship basis, but it was unclear at what price the deals were concluded.





Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Latest News