29 Mar 2024
Friday 3 May 2013 - 17:16
Story Code : 26863

European sour crude to stay tight on Iran, fuel oil: JBC

Supplies of sour, or high sulfur, crude oil in Europe will continue to be tight because of the loss of Iranian and Syrian exports and strong refining margins forfuel oil, according to JBC Energy GmbH.
Fuel oil is finding support in arbitrage to Asia, and while exports of Urals crude fromRussiamay increase in June, the continued loss of the bulk of Iranian and Syrian crude will keep the sour crude market tight in the region, a JBC Energy team of analysts led byDavid Wechin Vienna said in a report today.

RussianUrals cruderose to a discount of 6 cents a barrel to Dated Brent today in the Mediterranean, the narrowest since Aug. 20, according to data compiled by Bloomberg. Urals briefly traded at a premium to Dated Brent during July and August last summer. June loading programs for Urals crude in theBlack SeaandBaltic Seawill be issued later this month.

The recent strength in Urals crude came from an impressive array of factors, including higher fuel oil refining margins, a tight May loading schedule of Urals and European Unions sanctions on Iranian crude, the report said. JBC also cited the continued unreliability of Iraqi Kirkuk crude and the return of an estimated 1.4 million barrels a day of European refining capacity from maintenance versus April.

These factors are largely expected to remain in place, though the high prices for sour feedstock are already weighing on European margins, JBC said.

By Bloomberg

 

The Iran Project is not responsible for the content of quoted articles.
https://theiranproject.com/vdcgw79x.ak9334j5ra.html
Your Name
Your Email Address