Bloomberg News

Gunvor Sells Urals at Higher Price; Shell Stops Offering Forties

January 12, 2012

Jan. 12 (Bloomberg) -- Gunvor Group Ltd. sold Russian Urals in northwest Europe at a higher price. No bids or offers were made for North Sea Forties crude after Royal Dutch Shell Plc sold a 12th shipment of the grade for January loading yesterday.

North Sea

Shell didn’t offer any Forties cargoes today after selling 12 lots for January loading over the past three weeks. Yesterday, Shell sold a Jan. 22 to Jan. 24 shipment to Morgan Stanley at 50 cents a barrel less than Dated Brent.

Reported North Sea trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the session, Forties loading in 10 to 25 days was 37 cents a barrel less than Dated Brent, compared with a discount of 43 cents yesterday, according to data compiled by Bloomberg.

Brent for February settlement traded at $113.79 barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $112.78 yesterday. The March contract was at $113.57, a discount of 22 cents to February.

The share of Buzzard crude in the Forties blend fell to 30 percent in the week to Jan. 8, from 38 percent a week earlier, BP Plc said on its website.

Mediterranean/Urals

Gunvor sold 100,000 metric tons of Urals crude for Feb. 1 to Feb. 5 delivery to Rotterdam to China International United Petroleum & Chemical Corp., known as Unipec, at 85 cents a barrel less than Dated Brent, according to a Bloomberg News survey of traders monitoring the Platts trading window. The grade last traded at a discount of $1.05 a barrel on Jan. 10.

Eni failed to buy 80,000 tons of the blend for Jan. 24 to Jan. 28 delivery to Augusta, Italy, at 85 cents a barrel less than Dated Brent, compared with a discount of 95 cents a barrel yesterday, according to the survey.

Urals was 90 cents a barrel below Dated Brent on the Mediterranean, compared with a $1.20 discount yesterday, data compiled by Bloomberg show.

Exports of Azeri Light from Georgia’s Supsa port will climb to five cargoes in February from four in last month, according to a loading schedule obtained by Bloomberg News.

Shipments will total 3 million barrels, or 103,448 barrels a day, up from 77,419 barrels a day this month, the plan showed.

West Africa

Nigerian President Goodluck Jonathan was scheduled to meet labor leaders in a bid to end a four-day-old nationwide strike against the removal of fuel subsidies and avert a shutdown of the oil industry, a union leader said.

The meeting would take place at 5 p.m. local time today in Abuja, the capital, Peter Esele, president of the Trade Union Congress, told reporters.

Earlier, the Pengassan labor union said it would begin shutting down Africa’s biggest oil industry on Jan. 15, while the Nupeng union said it has withdrawn its workers from fields operated by companies such as Shell.

Qua Iboe crude was at a premium of $2.92 a barrel to Dated Brent, down from $2.97 a barrel yesterday, data compiled by Bloomberg show.

--With assistance from Dulue Mbachu and Elisha Bala-Gbogbo in Abuja. Editors: Raj Rajendran, Rachel Graham

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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