Russia's Rosneft cancels domestic oil tender due to poor pricing - traders

SINOPEC Engineering Co

26/11/2019 08:58

MOSCOW, Nov 26 (Reuters) - Russian largest oil producer
Rosneft  ROSN.MM  has cancelled an oil tender for domestic
supplies in December due to low price offers, traders said on
Tuesday.
    The tender pricing is a benchmark for most of the Russian
oil spot deals despite comparatively low volumes of between
10,000 tonnes and 30,000 tonnes.
    Domestic spot deals for December have been in limbo due to
uncertainty over Rosneft's tender.
    Rosneft had initially launched the first tender on Nov. 21,
but cancelled it due to unsuitable offers and set up a second
for Nov. 25, which was also cancelled, traders said.
    "There won't be tender sales for December. Rosneft didn't
like the prices again," a trader said. 
    Another trader said that the price offers were lower than
the exporting alternative, meaning it would have been more
profitable to export oil rather than sell it domestically. The
trader did not disclose the price.
    Rosneft sells oil at the tender from its joint venture with
China's Sinopec  0#CRUDE-RU .

 (Reporting by Ludmila Zaramenskikh; writing by Vladimir
Soldatkin; editing by Louise Heavens)
 ((vladimir.soldatkin@reuters.com; +7 495 775 12 42;))