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Urals differentials stable in quiet trade

The differentials between Russian Urals and other oil products remained stable on Friday despite low trading activity. Sellers and buyers were not rushing to begin December trading due to the uncertain political climate.

The Suez Canal has seen two tankers with around 1.5 million barrels each of Russian Urals crude drop anchor in the sea. This is an indication of the difficulties Moscow faces selling oil following the tightening of Western sanctions last month.

The supply problems are expected to worsen next week, as the deadline of November 21 for Rosneft's and Lukoil's transactions is fast approaching.

The schedule shows that Azeri BTC exports to Turkey from the Ceyhan port are expected to increase by 8% compared to November.

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On Friday, there were no offers or bids for Urals CPC Blend Azeri BTC.

Lukoil’s international operations were disrupted on Friday, as the U.S. deadline to stop doing business with the Russian company approaches and a planned sale to Swiss trader Gunvor fell through. (Reporting and editing by Diane Craft).

(source: Reuters)