Russian Urals prices in the Mediterranean held close to a 14-month low on Wednesday due to very weak refining margins in the region and cheaper alternative grades.
Vitol offered a 140,000 tonne cargo from Novorossiisk for loading May 24-28 at dated Brent minus $1.85, leaving Mediterranean Urals prices largely unchanged from Tuesday's 14-month low.
On Tuesday an 80,000 tonne cargo traded at dated Brent minus $1.65 and larger cargoes were about 20-25 cents a barrel cheaper.
Prices in the north slid on Wednesday, with Vitol selling a cargo to Exxon at dated Brent minus $2 a barrel in the Platts price assessment window, traders said.
Some of the pressure came from the restart of Libya's 35,000 barrel per day El Feel oilfield, which was announced by the National Oil Corp on Wednesday, though the far larger output from El Sharara remains shut-in as protestors are yet to reopen the pipeline valve to the port.
Libya's national output is now around 250,000 bpd.
Refining margins for Urals have also turned negative in recent days, making spot cargoes unattractive for refiners due to weak demand and rising supplies as many return from maintenance.
While spot Urals prices have fallen sharply this week, traders still expect a recovery if Russian exports fall in June, with port maintenance anticipated.
In the Mediterranean, swaps for June indicated prices are expected to rise by around $1 a barrel from current levels, and by $1.50 by July, traders said.
In lighter grades, ENI is offering a 80,000 tonne cargo of Sahara blend for loading June 7 at dated Brent plus $1.10, traders said, while Maersk is offering a similar cargo for loading June 14.
(Reporting by David Sheppard; editing by Susan Thomas and David Evans)
