BAKU, Azerbaijan, November 6. CPC Blend, Kazakhstan's light sour crude grade, rose by an average of approximately $6.60 per barrel in September compared with the previous month, reaching a premium of $1.90 per barrel to North Sea Dated, the highest monthly average since May, according to Argus, an international price reporting agency.
"High refining margins in the Mediterranean region and delays in Saudi crude loadings under term contracts contributed to a further increase in demand," Argus said.
The report noted that supply disruptions in the Persian Gulf sharply increased oil prices and demand for alternative crude grades during the month.
According to the agency, oil prices in Europe rose sharply following the shutdown of Saudi Arabia's East-West Pipeline. As a result, European refiners had to seek alternative supplies on the local spot market.
North Sea Dated rose by more than $25 per barrel, while Norwegian Johan Sverdrup, Europe's largest medium sour crude grade, increased by approximately $15 per barrel relative to North Sea Dated.
US light sweet crude grade WTI rose by approximately $16 per barrel on a CIF Rotterdam basis during September, while prices for North Sea benchmark grades Brent, Forties, Oseberg, Ekofisk and Troll increased by $14-$17 per barrel on an FOB basis.
"Escalating tensions in the Persian Gulf and strong demand for diesel feedstock drove up prices and demand for West African crude, particularly Nigerian and Angolan grades. Prices were also supported by the fact that Nigeria's 700,000-barrel-per-day Dangote refinery switched to using domestic crude," Argus noted.
