Bloomberg News

Shell Sells Forties Oil; Libya Offers December Crude in Tender

November 17, 2011

Nov. 17 (Bloomberg) -- Royal Dutch Shell Plc sold a cargo of North Sea Forties crude at a lower price. OAO Lukoil sought to buy Russian Urals in the Mediterranean without success.

Libya’s National Oil Corp. issued a tender to sell as much as 5.2 million barrels of crude oil for loading from the second half of November to December, according to a tender document obtained by Bloomberg News.

North Sea

Shell sold a cargo of Forties for Dec. 2 to Dec. 4 loading to Statoil ASA at 5 cents a barrel more than Dated Brent, down from 30 cents for the last transaction on Nov. 15, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

Reported North Sea trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the window, Forties loading in 10 to 21 days was at 14 cents a barrel more than Dated Brent, compared with 21 cents yesterday, according to data compiled by Bloomberg.

Brent for January settlement traded at $109.44 a barrel on the London-based ICE Futures Europe exchange at the close of the window, down from $111.76 yesterday. The February contract was at $109.33 a barrel, 11 cents less than January.

Four cargoes of Forties crude for loading in December were delayed, according to three traders with knowledge of the export program. The shipment with parcel number F1201 was deferred by two days, lot F1203 by one day and lots F1204 and F1208 by four days.

Mediterranean/Urals

Lukoil failed to buy 80,000 metric tons of Urals for Dec. 1 to Dec. 5 at 15 cents a barrel more than Dated Brent, the survey showed. No bids or offers were made in northwest Europe.

Libya’s NOC is offering a total of eight cargoes of Zueitina, Mellitah, Abu-Attifel, Al Jurf, Amna and Sirtica crudes, the document showed. The tender closed yesterday and bids will be valid until tomorrow.

Russia will ship 12 cargoes of 100,000 tons each of Urals crude from its Baltic Sea port of Primorsk from Nov. 30 to Dec. 6, unchanged from a month earlier, according to a partial loading schedule obtained by Bloomberg News.

Urals exports from Novorossiysk on the Black Sea from Dec. 1 to Dec. 7 will be seven cargoes, including three 140,000-ton shipments and four 80,000-ton lots, according to the plan.

BP Plc sold 650,000 barrels of Azeri Light crude to Mangalore Refinery & Petrochemicals Ltd. for loading in January, said two traders who declined to be identified because they aren’t authorized to speak with the media.

OAO Surgutneftegas issued a tender to sell 100,000 tons of Urals crude for loading Dec. 3 to Dec. 4 from Primorsk, according to two traders who participate in the market. Bids are valid until tomorrow.

West Africa

PT Pertamina bought three cargoes of West African crude totaling as much as 3 million barrels for loading in December via a tender, according to three traders involved in the region’s market.

Cnooc Ltd. sold 950,000 barrels of Nigerian Akpo crude for Dec. 25 to Dec. 26 via a tender to Chevron Corp., said three traders who participate in the market.

Mangalore Refinery is seeking to buy low-sulfur crude for loading in January and February, according to documents. The tender will be awarded on Nov. 25.

Qua Iboe fell by 5 cents to a premium of $1.83 a barrel to Dated Brent, the lowest since July 19, Bloomberg data showed.

--With assistance from Pratish Narayanan in Mumbai and Helena Athanasiou in London. Editors: John Buckley, Raj Rajendran

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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