Surgut issues early tender for 400,000 T of November ESPO Blend after premiums surge
Russia’s Surgutneftegaz issued a spot tender late on Tuesday to sell 400,000 tonnes of ESPO Blend crude loading from Far East Kozmino port in second-half November, far ahead of the loading plan as premiums for the grade topped $7 per barrel.
Surgutneftegaz offered buyers four cargoes of ESPO Blend with loading dates on Nov. 14-20, 18-24, 22-28 and 24-30, traders said.
The tender closes on Sept. 18 at 5 p.m. (1400 GMT).
The early tender issue is unusual as the ESPO Blend loading plan for November is expected only around Sept. 25, so Surgut is tendering to sell cargoes with loading dates it expects to be given, but which may not be accurate, traders said.
“Premiums have jumped, so Surgutneftegaz decided to take a risk,” said a source with a trading firm that is involved in ESPO Blend marketing.
Surgutneftegaz has just sold four ESPO Blend cargoes loading early in November at premiums above $7 a barrel, their highest in six years, as prices for light sour crudes have surged after the attacks on Saudi Arabia’s oil facilities.
Source: Reuters (Reporting by Olga Yagova; Editing by Tom Hogue)