Glencore Ramps Up Russian Diesel Cargo Buys
Glencore is tracked shipping record volumes of Russian diesel cargoes to Europe this month, with 296,000 metric tons so far loaded on nine tankers at Primorsk, all of which are heading to northwest Europe.
The commodity trader is being supplied by Russian oil producer Surgutneftegas, which ships all diesel from the Baltic port, according to shipping data analyzed by OPIS.
Since the OPIS Tanker Tracker began tracking diesel cargoes in January 2014, Glencore's Russian export cargoes have numbered 562,000 metric tons on 17 tankers.
Of this, some 296,000 tons have been booked for April, showing how swiftly Glencore has ramped up its participation in the Russian diesel market
Surgutneftegas' oil refinery in Kirishi produced 18.5 million tons of oil products in 2014, based on information in its most recent annual report. Glencore won a tender from Surneftegas to buy 1.5 million tons of diesel from
April through June, a March 21 report from Reuters said.
Before this, Surgutneftegas had appeared to mainly supply Swiss-based trader Crudex, which has shipped nearly all of the diesel cargoes supplied by Surgutnefegas since October 2014.
That was when completed refinery upgrades improved diesel fuel quality, allowing exports to the European market for the first time.
Glencore's first Surgutneftegas' cargo, 44,000 metric tons on the Torm Astrid, departed Primorsk on April 3, with another eight tankers seen chartered and to load up until April 21.