Mediterranean market under pressure

摘要

More Mideast Gulf sour crude is available in Europe, but refiners lack the desulphurisation capacity to run it. Sour Mediterranean crudes recently dropped to their lowest levels against benchmark North Sea Dated in two and a half years. Sellers have struggled to place rising supply amid limited demand. Medium sour Russian Urals has traded at $3/bl below North Sea Dated on average this year, against $1.35/bl in 2010 and 70￠/bl in 2009 (see graph). Syrian Souedie, with 4pc sul- phur, is at a discount of over $13/bl to North Sea Dated, and prices for June cargoes are likely to be even lower.