Urals crude differentials remained stable on Tuesday in muted trade as March cargoes sales were slow to start, while discounts for CPC Blend dropped to the widest level in three years to dated Brent, traders said.
Several February-loading CPC Blend cargoes were sold at around dated Brent minus $5 a barrel last week, they added.
Traders said weak differentials reflected that most buyers had already secured February barrels elsewhere to avoid CPC’s unstable supply. But the attractive price fuelled demand for the grade, so differentials started to narrow slightly this week, traders said.
Urals oil cargoes for loading in March were slow to trade and buyers did not show active demand amid market uncertainty created by the prospect of new harsh Western sanctions on shipping of Russian barrels, traders said.
