April 13, 2012 / 5:21 PM / in 6 years

Med Crude-Weekend Iran talks weigh on market

LONDON, April 13 (Reuters) - Russian Urals spot
differentials sank further in slim demand on Friday while the
outcome of this weekend's high stakes nuclear talks with Iran
weighed on the market, keeping buyers on the sidelines. 	
    Refiners were reluctant to commit to cargoes on worries of
sharp movements on dated Brent come Monday as a result of
negotiations between six world powers and Iran to stave off the
latter's nuclear ambitions. 	
    "Everybody is waiting to see Monday's Brent prices," the
same refiner said.	
    In the Platt's window, Tenergy offered its 80,000 tonnes
Urals cargo down to dated Brent minus $2.90 but no buyer emerged
as the market anticipates differentials to fall even lower,
traders said.	
    In tender news, BP won Ust Luga's tender for a 100,000 tonne
Urals cargo loading April 27-28 and Surgut awarded its April
28-29 tender at around dated Brent minus $3.70, traders
said. 	
    BP could not be reached to comment.	
    Tunisia's state oil company Etap issued two tenders, one to
buy a 60,000-64,000 tonne Azeri Light cargo loading May 29-31
and the other to sell a 78,000-80,000 tonne cargo of Algerian
light sweet Zarzaitine loading May 24-29. 	
    Repairs on the Kirkuk-Ceyhan pipeline, which was bombed last
week, were completed and pumping has restarted. The pipeline
transports medium sour Iraqi Kirkuk crude oil. 	
    Planned port maintenance is expected to end by April 15 with
exports restarting soon after.	
    The May official selling price (OSP) on Iraqi Kirkuk, set at
dated Brent minus $3.50 was not dropped as much as traders
expected, which could hamper re-selling especially with crashing
Urals differentials. 	
    In sweet crude grades, the May programme of Kazakh CPC Blend
will be 2.419 million tonnes, according to a loading programme
seen by Reuters. 	
    Trade of Libyan crude remained subdued as traders awaited
the May OSPs, expected early next week. 	
    "Buyers are scared. Last month, it was painful for trade
done before the Libyan OSPs had been released," one trader said.	
    The first decade of Azeri Light has moved already to term
contract holders, said the same trader. Offers have not yet
surfaced but the differential to dated Brent was holding around
plus $3.50.	
	
 (Reporting by Julia Payne and Ikuko Kurahone; editing by James
Jukwey)

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