The incident of Suez Canal blocking by the Ever Given container ship may result in growing demand for the Russian Urals export oil blend, Senior Freight Analyst of Vortexa consultancy Arthur Richier told TASS on Friday.
It is correct to assume that the Russian Urals is similar to Middle Eastern crude grades in terms of sulfur content, Richier noted. The Russian blend will therefore become “an ideal substitute for European refiners wishing to purchase crude in the near future and wanting to avoid delays in cargo arrivals because of the Suez Canal situation. If that is the case, an increase in buyers of Urals would support the price higher in the short to medium-term,” the analyst said.
“Today it is too early to tell whether there is a material increase in demand for Urals in Europe as most market participants are hoping the situation is resolved in a matter of days,” Richier added.
Brent oil futures gained 0.28% and climbed to $64.69 a barrel on the London-based ICE today.
