November 17, 2011 [Reuters] – Russian Urals crude was steady on Thursday, extending the period of its premium to dated Brent to a fourth week in the Mediterranean and a second week in the Baltic, amid strong refining margins and steady-to-short supplies.
Supplies could come below expectation in December in the Baltic as industry sources told Reuters on Thursday that possible problems with infrastructure at a newly-built Baltic oil terminal at Ust-Luga could delay its first crude loading, scheduled for Nov. 30.
“There won’t be any loadings on those dates, and it isn’t clear what there could be in December,” one industry source said.
The first cargo was sold to trader Warly by state oil company Rosneft last week.
The Ust-Luga terminal, the end of the second phase of the Baltic Pipeline System (BTS-2), had been expected to handle five more cargoes in December, including parcels from Rosneft and possibly Surgutneftegas.
Traders said Russian exports via the Polish Baltic port of Gdansk could continue in December as a result.
“I think that in Gdansk in December there could be three or four cargoes, probably four,” said another industry source, adding that Transneft would decide where to distribute excess volumes in the Transneft system if Ust-Luga is shut in.
Gdansk is expected to handle 585,000 tonnes of Russian crude this month, but traders had expected it to run dry next month with the launch of Ust-Luga, which had also been expected to sap volumes from Primorsk.
In the Platts public window, Lukoil bid for an early December 80,000-tonne cargo at plus 15 cents to dated Brent but could not find sellers.
In tender news, oil firm Surgut will sell one cargo from Primorsk for Dec. 3-4 delivery.
Italy resumed crude oil imports from Libya and increased imports from Iraq and several minor suppliers in August, while reducing shipments from major suppliers Azerbaijan, Russia and Saudi Arabia, according to data from Italy’s industry body.
