ONGC sells Nov-loading Russian Sokol crude at highest premium in 5 mths – sources
Indian explorer ONGC Videsh has sold a cargo of Russian Sokol crude loading in November at the highest premium in five months on robust demand in Asia, four trade sources said on Wednesday.
The 700,000-barrel cargo loading on Nov. 16-22 was sold to Shell at $5.28 a barrel above Dubai quotes, they said, up from a previous deal at a premium of $5.10-$5.20 a barrel.
This is the second November-loading cargo ONGC has sold via tenders this month.
Spot premiums for Russian and Middle East grades have hit multi-month highs in this month’s trade as they are priced off Middle East benchmark Dubai which has become relatively cheaper than Brent DUB-EFS-1M.
Asia’s demand for crude like Sokol, that yield more middle distillates, has also strengthened ahead of peak winter consumption.
Source: Reuters (Reporting by Florence Tan; editing by Richard Pullin)