First-Ever Sale of Russian Crude to US West Coast Harbinger of Bear Market

Oil Daily, The, April, 2003

Reflecting an oversupplied global crude market, a 700,000- barrel cargo of Russian Urals sold into the US West Coast spot market last week for the first time ever as sellers look far afield to place unsold cargoes despite the complete halt of Iraqi exports and a disruption of Nigerian flows.

Differentials for most domestic and foreign grades are expected to come under further pressure as a seasonal downturn in demand coupled with market expectations that Iraqi exports could soon be resumed despite the war also pushed down oil futures. Moreover, the domestic turmoil that took some 800,000 barrels a day of Nigerian crude off the market appeared to be easing with some operators resuming work by late Friday.

"The world is clearly more than adequately supplied...