Bloomberg News

Russia’s Sokol Oil for August Trades Lower Than July: Asia Crude

June 08, 2012

Russia’s Sokol crude for August sold at lower premiums than July.

Russian producer OAO Rosneft sold a cargo of Sokol loading Aug. 1 to Aug. 10 at a premium of about $5.30 to $6 a barrel, said two traders who participate in the market, declining to be identified because the information is confidential.

Rosneft sold a Sokol shipment last month for July 6 to July 16 at a premium of $7.50 a barrel, two traders said on May 14.

Two more Sokol cargoes for August are for sale. ONGC Videsh Ltd., the overseas unit of India’s largest state-run explorer, issued a tender to sell 700,000 barrels of Russian Sokol crude for loading from Aug. 17 to Aug. 20, according to an offer document obtained by Bloomberg News. Bids are due June 13.

Marubeni Corp. is selling 95,000 metric tons of Russian Sokol crude for Aug. 25 to Aug. 30, according to two traders who participate in the market, declining to be identified because they aren’t authorized to speak to the media.

Marubeni is marketing the cargo on behalf of SODECO, a Japanese group owning 30 percent of the Sakhalin-1 project that produces Sokol crude.

Russia’s TNK-BP offered to sell 100,000 tons of East Siberia-Pacific Ocean crude, or ESPO, for loading July 22 to July 25, said two traders who participate in the market, declining to be identified because the information is confidential. The offer closes today.

Refining Profits

The profit from turning a barrel of Dubai crude into fuels priced in Singapore averaged $3.90 during the last five days, according to data compiled by Bloomberg. The 30-day average is $3.71 a barrel.

Dubai crude’s backwardation, when prices for prompt supplies are greater than those for future delivery, fell 1 cent. Swaps for July were $1.27 a barrel more than September, according to data from PVM Oil Associates Ltd., a London-based broker.

The Brent-Dubai exchange for swaps, which measures the European marker grade’s premium against the Middle Eastern oil, fell 20 cents for July to $3.05 a barrel, according to data from PVM. The August EFS was down 17 cents at $3.03.

Oman for July delivery fell $2 to $95.65 a barrel at 12:30 p.m. on the Dubai Mercantile Exchange.

To contact the reporter on this story: Ramsey Al-Rikabi in Singapore at ralrikabi@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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