MOSCOW—Ukraine’s Black Sea port of Odessa was set to receive its first ever WTI oil cargo from the United States, according to industry sources and shipping data, just a month after the front-month futures for the blend turned negative.
WTI May crude futures sank to minus $38/bbl on April 20, just days before their expiration, in a quirky trading pattern never seen before, amid overproduction and lack of storage capacity inflicted by the coronavirus-battling restrictions.
On May 21, the front-month WTI futures were trading at above $34 a barrel.
Industry sources said that the UMLMA tanker has shipped in BP’s 80,000-tonnes cargo for further delivery to the Kremenchug refinery of Ukrtatnafta. The value has not been disclosed.
Kiev has moved to diversify its energy supplies from its ex-Soviet master, Russia, following Moscow’s annexation of the Crimean peninsula in 2014 and subsequent flair-up of pro-Russian insurgency in eastern Ukraine.
The country stopped buying Russian natural gas in November 2015.
Odessa last received an oil cargo from the United States, the Bakken crude blend, in March.
Recommended Reading
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.