international magazine
21-04-2020 18:01


UKRTRANSNAFTA BUYS CHEAP CRUDE INTO THE SYSTEMS AND FOR THE MARKET



UKRTRANSNAFTA BUYS CHEAP CRUDE INTO THE SYSTEMS AND FOR THE MARKET

Ukrtransnafta, Ukrainian oil pipeline system operator and art of the Naftogaz Ukrainy national oil and gas holding, acquired from Socar Trading, the trading division of the State Oil Company of Azerbaijan (Socar), two crude cargoes with total volume of some 1.26mn bls (about 170,000t).

According to the trading , the two vessels are penciled for delivery this week to the port of Yuzhny (Pivdenny in Odessa region), 40km north of Odessa.

Ukrtransnafta acquired crude for its own technological needs, as since March 2020 it has been actively pumping the Azeri blend through its systems towards the Belarusian border for the 240,000 b/d Mozyr Oil Refinery (four tanker cargoes with a total volume of some 2.6mn bbl or some 350,000t), however, as market sources say, oil was bought cheaply (when the price of the Brent marker was already below $30/bl) and in case of crude prices rebound those volumes can be sold, the industry sources indicated.

Sources also indicate that Ukrtransnafta has the excess of the storage capacity and would like to continue buying crude at competitive prices.

The Free Spirit and Aegean Nobility tankers are supposed to deliver crude this week, which was loaded at the ports of Ceyhan (Turkey) (BTC grade) and Supsa (Georgia) (Azeri Light grade).

Free Spirit arrived to the Pivdenny on 21 April 2020



Crude cargoes are to be sent into the Ukrtransnafta system.