India and Turkey led Urals buyers in June, LSEG data shows

Turkiye Petrol Rafinerileri AS

01/07/2024 16:39

MOSCOW, July 1 (Reuters) - India and Turkey were the
main buyers of Urals oil cargoes loading from Russia's sea ports
in June, while China's purchases of the grade were undermined by
weak refining margins and high freight costs, LSEG data showed
and traders said.
    India, which tops the buyers list of seaborne Russian oil
cargoes since 2022, purchased more than 65% of Urals loading
last month, according to Reuters calculations based on LSEG
data. India also imports Russian oil grades other than Urals.
    The main Indian ports for Urals oil cargoes were Sikka,
Vadinar, Mundra and Cochin, according to LSEG data. The ports
accommodate oil imports for the main Indian oil refiners:
Reliance Industries, Nayara Energy, Indian oil and BPCL.
    Turkey, which ramped up Urals oil purchases in May to an
all-time record, imported slightly less in June, accounting for
about 20% of Urals oil exports last month, Reuters calculations
based on LSEG data showed.
    Urals oil cargoes are mostly destined for Turkey's Aliaga
and Izmir, where Turkey's Tupras refineries and SOCAR's STAR
refineries are situated.
    June-loading Urals oil deliveries to China were seen as
minor, with just a couple of Urals cargoes going there, LSEG
data showed. 
    Urals oil supplies to China are low amid weak demand from
local refineries, which suffer from weak margins and are not
keen to pay up for the Russian grade, traders said. They also
added costly freight from Russian western ports to China, also
weighing on profitability of supplies, traders said.
    China remains a major buyer of Russia's Far East ESPO Blend
oil grade and has recently increased buying of July-loading
cargoes.
    About 15% of Urals oil cargoes loaded in June don't have a
final destination, according to LSEG data. Most of them are
likely to find home in India, traders said.
    India's demand for Russian Urals oil remains high, keeping
prices in India's ports at a firm level.

 (Reporting by Reuters; Editing by David Holmes)