According to sources from S&P Global Platts, there is a shortage of sour grades in Europe, such as Russian oil of the Urals brand. In addition, due to the risk of a “Russian invasion”, the price of Urals is near a 12-month high.
Photo: Egor Aleev / TASS
A possible escalation in production in Ukraine is an “acceptable risk” as Russian Urals oil prices trade near a 12-month high. About this with reference to sources in trade circles reported Analytical agency S&P Global Platts.
“Given the lack of barrels on the market, this [вторжение] acceptable risk,” Ural trader said on condition of anonymity.
Another source of the agency in one of the European refineries said that sour grades of Urals brand oil have recently shown demand due to the shortage of crude oil in Europe.
Another trader told S&P Global Platts that the decline in the futures value of contracts for difference (CFDs) is a sign of a possible slowdown in interest in the conventionally traded Urals. Traders buy CFDs to hedge their exposure to the physical spot price of a barrel it uses.