MOSCOW (Reuters) – Consignments of West Siberian oil delivered to the Russian domestic market in October fell slightly, by an average of RUB 350 per tonne, compared to this month's volumes, following the negative dynamics of global quotations, Reuters monitoring showed.
According to traders, October resources from Western Siberia were sold at 19.300-19.500 rubles per ton.
Moreover, market participants noted the continuing surplus of raw materials in all regions with sluggish demand from processors suffering from weak margins.
“The margin remains poor, to put it mildly, plus the seasonal decline in demand for petroleum products, and the second wave (of the coronavirus) is covering,” a source in the industry said.
Nevertheless, when selling October spot volumes, manufacturers managed to reduce the discount level to the estimated value of the export alternative (netback) compared to the previous month – to 200 rubles.
Thus, according to Reuters calculations, netback for oil shipment from Western Siberia through the port of Primorsk during the active trading period for Russian oil for delivery in October, September 23-25, averaged 19.600 rubles per ton (fip Nizhnevartovsk).
The September oil prices on the Russian market were below the netback value by an average of 1,400 rubles per tonne.
Russian producers sell oil on the basis of export parity, which is calculated based on the North Sea BFOE benchmark minus duties and transportation costs.
BFOE quotes during the period of distribution on the Russian market of October volumes of raw materials were at the level of $ 41 per barrel against $ 45- $ 46 per barrel for trading in September.
Oil quotes on the Russian domestic market are available by code, international – ,,.
After a two-month break, Rosneft (MCX: ROSN) sold 30,000 tons of Udmurt oil at a tender: crude for delivery to the Russian market in October was sold at RUB 19.608-19.706 per ton (fip Mishkino, Malaya Purga), traders reported.
Rosneft is selling oil at a tender from its joint venture with China's Sinopec – Udmurtneft.
The cost of October stable gas condensate (SGC) at the tender of Rosneft subsidiary Rospan International decreased by an average of 6% (-1.505 rubles) relative to the cost of September resources, industry sources said.
According to their data, Rospan sold 5,000 tons of SGK on the basis of the Korotchaevo station at 22,900-26,000 rubles (the weighted average price is 23,710 rubles).
Rosneft does not officially comment on its tenders.
Zarubezhneft offered October oil from Timan-Pechora at the St. Petersburg International Commodity Exchange (SPIMEX), but no deal followed, the exchange data showed.
Oil consignments from the Komi Republic were put up for sale on September 23, 24 and 25 at prices ranging from 20.020 rubles to 20.370 rubles (fip Usa), but buyers showed no interest.
At SPIMEX, Zarubezhneft sells oil with shipment to Usa from the resource of a joint venture with Vietnamese Petrovietnam, Rusvietpetro.
(Lyudmila Zaramenskikh, editor Maxim Nazarov)