Pakistan to Receive Russian Urals Crude via Omani Port

Pakistan is scheduled to receive around 750,000 barrels of Urals crude over the coming days, which would mark the South Asian nation's first commercial-scale purchase of Russian crude oil, as it looks to take advantage of steep discounts on the medium sour grade to save on energy import costs and dollar reserves, industry and government sources said over May 27-30.
Islamabad had signed an agreement to purchase 750,000 barrels of Urals crude for delivery into an Omani port in May and arranged for it to be brought to Karachi's Qasim Port in small batches in the first half of June, according to refining industry sources and Pakistan’s Petroleum Minister Musadik Malik, S&P Global Commodity Insights reported.
“Pakistan's southern ports and oil terminals are only capable of handling a maximum oil tanker capacity of 50,000 tons, or around 370,000 barrels, and it was necessary for the Russian crude to be first berthed in Oman,” he said.
Malik did not disclose any price details, while government officials contacted by S&P Global Commodity Insights also declined to comment on the price differential or the spot discount for the cargo.
However, refining industry sources based in Karachi and sour crude traders based in Singapore with close knowledge of South Asia's crude trade flows indicated that Pakistan may have acquired the Urals crude at a discount of as much as $20 per barrel to Platts Dated Brent or Platts front-month Dubai on CFR basis, with a possible payment option in non-dollar currencies.