Russian export blend Urals is gaining strength on tight supplies in the region on the back of EU sanctions. Above is the forward curve for the REBCO contract on CME. While the REBCO contract is for delivery at a port much further north, Primorsk, the Med arb is said to be taking place between Novorossiysk and Spain.
via Reuters,
"The arbitrage to the Mediterranean is open," said a trader
with a major house, adding he had heard that at least one
100,000 tonne cargo of Urals might be moving in this direction
from the Baltic.
"If you want to bring a cargo to the Med, to Spain for
example, the arb is workable," said another trader with a large
company.
A snapshot of today's traffic at Novorossiysk shows several tankers and bulk carriers awaiting their loading windows. The red icons are wet tankers while the green are dry bulk.
