Med Crude: Urals rises on strong margins, Venezuela seeks cargoes
In the Platts price assessment window, Total bid at dated Brent minus \\$0.95 a barrel for loading Feb. 26 - March 2, up around 30 cents from the previous assessment.
It did not find a seller.
No bids, offers or deals were seen in the Mediterranean, leaving differentials just below parity with dated Brent. Swaps for the balance of the month were around 40 cents below the benchmark earlier this week. Venezuela's state-run oil company PDVSA launched a tender to buy 1-2 cargoes of Russia's Urals crude for delivery March 10-31 at Bullenbay terminal in the Caribbean island of Curacao, according to a document seen by Reuters on Thursday.
PDVSA started buying Urals crude in November for its 335,000 barrel per day (bpd) Isla refinery in Curacao. Last month it offered to buy a similar cargo on the open market that will be unloaded next week.
The new tender closes Feb. 18, and specified the oil must come from the Primorsk terminal.
As well as demand from Venezuela, traders said loading delays for rival grades such as Iraq's Basrah were also providing support.
Strong refining margins have also boosted buying by plants ahead of seasonal maintenance, though overall crude supplies remain ample.
Refiners in the Mediterranean cracking Urals stood at almost \\$8 a barrel on Thursday, according to Reuters models, while margins have averaged \\$6.50 over the past five days, more than double the level for the past year.
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