July 11 Pacific Rubiales sold Repsol
a million barrels of Castilla crude on Wednesday at
$2.60 a barrel under September West Texas Intermediate, traders
said on Thursday.
Loading for the cargo, which traded well over valuations for
the crude heard in recent weeks of $8 a barrel under
international benchmark Brent, was set for between July 5 and
Brent settled at a $2.82 premium to WTI on Thursday.
Repsol and Pacific Rubiales declined to comment on the deal,
citing company policy against making statements on market
Some traders were baffled by the high prices fetched by the
cargo and noted that, during the bidding process, a second offer
had been made at $3.10 a barrel under WTI, indicating the
winning deal was close to current market value.
Traders attributed the high prices to tight European crude
supplies, adding that buyers may use the heavier Castilla as a
blend component, which may make the economics behind the deal
more advantageous than what they seem at first sight.
Pacific Rubiales opened another tender to sell a separate
million-barrel cargo of Castilla, with results expected late