Urals crude differentials to dated Brent eased on Friday amid higher freight rates for the grade from Russia’s Western ports to Asia, traders said and Reuters calculations showed.

Freight rates for shipping Urals crude from Russia’s western ports to India rose sharply in October, driven by strong export volumes and mounting sanctions pressure, industry sources told Reuters.

Reliance Industries Ltd, the top Indian buyer of Russian oil, will abide by Western sanctions against Moscow while maintaining its relationship with current oil suppliers, its spokesperson said in a statement.

Russia’s fourth-largest oil refinery, the Ryazan plant located south east of Moscow, halted a primary crude distillation unit on Wednesday following a Ukrainian drone attack.

Kazakhstan’s Karachaganak oilfield where oil majors Chevron and Shell operate will be forced to trim November exports due to a Ukrainian drone strike in Russia.

PLATTS WINDOW

No bids or offers were reported in the Platts window for Urals, Azeri BTC or CPC Blend crude.

NEWS

Spot premiums in crude markets jumped on Thursday on expectations that U.S. sanctions on top Russian producers will spur China and India’s demand for supplies from the Middle East, Africa and South America, trade sources and analysts said.

U.S. sanctions on Russian-owned NIS have prevented the Serbian oil group from receiving a crude cargo that could have bought time for Serbia’s sole refinery, which faces closure without new supplies, sources with knowledge of the matter said.

Russia is analysing the latest Western sanctions, and will act according to its interests, Kremlin spokesman Dmitry Peskov said on Friday.
Source: Reuters