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MOSCOW/SINGAPORE - Poland imported a cargo of Abu Dhabi Murban oil in August for the first time as the country seeks alternatives to Russian oil, Refinitiv Eikon data showed and traders said.
European Union leaders agreed an embargo on Russian crude oil imports that will take full effect by end-2022 with several exemptions. Poland pledged to stop buying Russian oil by the end of the year.
France's Total supplied 98,100 tonnes of Murban crude oil to Poland's refiner PKN Orlen, traders said. The vessel called Marathi offloaded the cargo in Poland's Gdansk port on Aug. 7, Refinitiv Eikon data showed.
Total declined to comment on trading activities, PKN Orlen representatives did not immediately respond to a request for comment.
Poland has been relying on Russian oil as the main feedstock for its refineries for years, but has been trying to reduce Urals buying in recent years as the relationship between the two countries grew cooler.
This year, Poland significantly cut purchases of Russian oil via the Druzhba pipeline and sea cargoes, while increasing purchases of alternative oils from Saudi Arabia, West Africa, the North Sea and the United States, according to traders and Refinitiv Eikon data.
Murban oil is a good replacement for Urals in terms of quality, traders said. Murban has a lower sulphur content than Urals and is lighter, while giving a similar product yield when refined.
In spring, Murban cargoes started to flow to Europe as EU buyers shunned Russian oil.
Nevertheless, Murban is more suitable for Asian oil markets as it is located closer to regional buyers, widely consumed in Asia and is priced off Asia's Dubai benchmark. The grade is shipped to Europe only if arbitrage economics allow, traders said.
"It's unusual, but people are testing the crude," said a Singapore-based trader commenting on the shipment.
In August, there are no Urals oil shipments scheduled for delivery to Gdansk so far, traders said. The port imported 200,000-300,000 tonnes of Urals monthly in May-July, according to Refinitiv data.
(Editing by Elaine Hardcastle)