Urals crude differentials to dated Brent weakened on Tuesday amid rising shipping costs for the grade from Russia's ports to India, driven by a surge in loadings from Primorsk, Ust-Luga and Novorossiisk, traders said and Reuters calculations showed.
Current freight costs for transporting Urals from the Baltic ports of Primorsk and Ust-Luga to India rose to around $7 million for Aframax tankers, up from $6–6.5 million for one-way voyages in late August to mid-September, industry sources said.
Meanwhile, prices for Urals in western Indian ports have remained stable, traders said.
They expect Urals exports from Russia's western ports to stay elevated in October, roughly in line with September levels, but exact lifting plans for the month remain unclear, they added.
Traders offering Russian oil have begun asking Indian state refiners to pay in Chinese yuan, taking recent signs of improving relations between New Delhi and Beijing as a chance to simplify deals with Indian buyers, trade sources said.
No bids or offers were reported in the Platts window on Tuesday for Urals, Azeri BTC or CPC Blend crude.
The Caspian Pipeline Consortium has lowered an oil pumping plan for this year to 74 million tonnes from 76 million tonnes, CPC head Nikolai Gorban said on Tuesday.
(Reporting by Reuters)
