Med crude-Urals rise in south, sweets firm

LONDON, July 10 (Reuters) - Differentials on Russia's main
export grade Urals rose sharply in the Mediterranean owing to
tight prompt supplies, while light sweet crude grades continued
to climb from recent record lows on the back of recovering
naphtha margins.
In the Platts window, Statoil bid for a 100,000 tonne Urals
cargo loading July 27-31 up to dated Brent minus 80 cents cif
Rotterdam but no deal was done.
Total bid for a cargo of Azeri Light up to dated Brent plus
$2.50 cif Augusta loading July 28 to August 1. But no offer
surfaced.
Trade of August loading cargo of Azeri Light has yet to get
under way, but levels could firm on the back of a smaller than
expected loading programme.
Azeri oil exports via the Turkish port of Ceyhan will fall
to 19.6 million barrels in August, down from 20.75 million
barrels in July.
Outside the window, Arcadia sold an 80,000 tonne cargo of
Urals to Lukoil at dated Brent plus 67 cents cif Mediterranean,
several sources said.
Tight supplies in the Mediterranean coupled with absent
Iranian crude are keeping Urals differentials in the south at
premiums to North West Europe, market sources said.
North West Europe Urals were said to be at around dated
Brent flat but no deals surfaced.
July loading cargoes of Iraqi Kirkuk were largely placed,
one refiner said. Iraqi state marketer Somo hiked its August
official selling price (OSP) to dated Brent minus $1.15 on
Kirkuk to Europe but deals are still likely to take place at
around flat to the OSP, another trader said.
On sweet crude grades, differentials continued to firm on
the back of recovering naphtha margins.
TCO sold a cargo of Kazakh CPC Blend loading July 31 to
August 1 at around dated Brent minus $1.60/1.55, several traders
said. Buyer details could not be confirmed.
Differentials for Algeria's naphtha rich Saharan Blend are
firming towards just under dated Brent minus $2.00 fob Algeria,
several regular lifters said.
Libyan OSPs still did not emerge as expected. Traders expect
the August prices to be reduced.

(Reporting by Julia Payne; editing by Keiron Henderson)