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Lower freight and costs at Turkish straits support Urals rates above $60/bbl in Russian ports

MOSCOW, March 1 ) - Lower freight rates and fewer charge costs at the Turkish straits are supporting Urals crude costs at Russian ports, as Moscow's flagship grade holds company above the Western cost cap of $60 per barrel, information from traders, the Riverlake agency and computations revealed.

Urals prices have climbed above $66 a barrel in western ports amidst stable freight rates and narrowing discount rates for March cargoes in mid-February, and have actually gone beyond a Western cost cap for around 6 weeks.

Freight rates for Aframax ships, which typically load some 720,000 barrels of Urals crude in Primorsk or Ust-Luga for a. one-way voyage to Indian ports, fell below $8 million per voyage. to balance some $7.5 million, as demand for ice-class vessels is. anticipated to alleviate, according to trading and shipping sources.

Rates for Suezmax tankers, which typically load some 1 million. barrels of Urals in Novorossiisk for delivery to India, alleviated by. some $0.5 million to some $6.75 million per trip, the sources. added.

Daily demurrage expenses - or penalty costs for delayed vessels. - and a much shorter time for oil tankers to go through the Turkish. straits are supplying additional assistance to Urals FOB prices in. the Black Sea port of Novorossiisk.

According to price quotes, charterers' expenses for. downtime in the Bosphorus and Dardanelles for a 140,000-ton oil. tanker are approximated at about $0.15 per barrel, as of Feb. 29,. below $1.32 per barrel typically in January and $0.67 on. average in February.

Excess downtime in the Turkish straits on a round trip from. the Mediterranean to the Black Sea has actually fallen to a multi-month. low of three days on Thursday against 11 days typically for. February and 18 days typically for January this year. << 0 #RIVERLAKE- STRT>>, Riverlake information showed.

Daily demurrage expenses for 140,000-ton Suezmaxes. << RL-TRDEM-SUEZ > and 80,000-tonne Aframaxes< RL-TRDEM-AFRA > fell. to$ 50,000 and$ 30,000, respectively, according to Riverlake. data.

This is below $80,000 and $70,000 daily for Suezmax. and Aframax tankers, respectively, a month ago.

(source: Reuters)