Colombia crudes swing on market developments

OREANDA-NEWS. August 17, 2015. Colombian crude prices were particularly volatile this week as a combination of midstream and downstream issues disrupted current supply and demand fundamentals in the country.

A force majeure that canceled two 500,000 bl cargoes of Vasconia Norte at the Caribbean port of Cove?as and rescheduled a third from Colombian state-owned Ecopetrol led heavy sour Castilla blend and medium sour Vasconia to rise by almost 30?/bl on 10 August to discounts to Ice Brent of \\$10/bl and \\$5.75/bl respectively.

The company also canceled two 360,000 bl shipments of South Blend at the Pacific port of Tumaco and rescheduled a third shipment.

Vasconia then weakened by 15?/bl on 11 August to a discount to November Ice Brent of \\$5.90/bl after Ecopetrol restarted its 220,000 b/d Ca?o Limon-Cove?as pipeline that had been down for about two months following a surge in Colombian rebel attacks.

The 478-mile line transports Vasconia Norte from the Occidental-operated Ca?o Limon field to Cove?as port for export.

Both Vasconia and Castilla Blend are now poised to rise once again as Ecopetrol's new 165,000 b/d Reficar refinery begins to commission crude oil after a long series of delays. The company plans to run local Magdalena, Vasconia and Castilla Blend grades as a base slate, which will lower supply as less Colombian crude will be exported in upcoming months.