Saudi May exports to fall to lowest in nearly a decade

Oil markets are at the beginning of a fragile recovery

  
Image used for illustrative purposes. Shaybah oilfield complex is seen in this aerial view deep in the Rub' al-Khali desert, Saudi Arabia, November 14, 2007.

Image used for illustrative purposes. Shaybah oilfield complex is seen in this aerial view deep in the Rub' al-Khali desert, Saudi Arabia, November 14, 2007.

REUTERS/ Ali Jarekji

LONDON: Differentials for Urals were unchanged on Tuesday but Azeri Light jumped after a sale at a much stronger level for the grade, while the paper market suggested a strong bounce for Kazakh CPC Blend.

* Socar sold Azeri Light via tender at the end of last week for second half May loading. Traders said cargo was sold around dated Brent plus $2.50 but further details could not be confirmed.

* About a week ago, Azeri was at around a discount of $2.50 to dated Brent.

* Hellenic Petroleum issued a buy tender for either Russian Urals or Kazakh CPC Blend for May 17-19 or 26-28 arrival. The tender closes on Wednesday.

* Traders said the revised CPC programme for May revealed a smaller reduction than expected but despite this the Contract-For-Differences (CFDs) for the grade firmed.

* A CFD for CPC was offered at minus $3.50, much higher than previous levels well below minus $4 barrel, indicating a stronger market.

PLATTS WINDOW

* There was no deals, bids or offers in the Platts window.

RELATED NEWS

* Saudi Arabia's crude oil exports in May are expected to drop to about 6 million barrels per day (bpd), the lowest in almost a decade, and domestic refining output is likely to fall as the coronavirus crisis hits demand, industry sources and analysts say. 

* Oil markets are at the beginning of a fragile recovery as coronavirus lockdowns ease, though long-term peak demand may be permanently eroded, Vitol's chief executive told Reuters. 

(Reporting by Julia Payne. Editing by Jane Merriman) ((julia.payne@thomsonreuters.com; +44 207 542 1836;))


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