The Mediterranean Urals market has hit a 1.5-year high, supported by a shorter June Urals loading program and healthy demand in the second half of June.
Aframax Urals cargoes, basis CIF Augusta, were assessed at a $0.865/b discount to the Mediterranean Dated Strip Monday, its highest since December 3, 2015 when it was at a discount of 84.5 cents/b, according to S&P Global Platts data.
Demand for the crude has been strong over recent days, with Litasco buying four cargoes of Urals CIF-Augusta, two each on Thursday and Friday, while bidding again for a cargo in Monday's Platts Market on Close process but remaining unsold at Dated Brent minus $0.80/b for a June 26-30 cargo.
Vitol were on the other side Monday, offering a June 24-28 cargo at Dated Brent minus 75 cents/b, which also remained outstanding in the MOC.
High Urals CIF-Augusta has also led to the spread between Urals CIF-Augusta and Urals CIF-Rotterdam widening again after the Baltic loading crude -- which typically trades at a discount to its Mediterranean counterpart due to the much larger volume being exported from the Baltics -- briefly flipped to a premium over Urals CIF-Augusta just over a month ago at the beginning of May.
The spread has since returned to a discount for CIF Rotterdam, which hit 55 cents/b on Monday, its widest since April 28.
