Bloomberg News

Statoil Bids Forties at One-Month High; Basrah Exports to Rise

February 01, 2012

Feb. 1 (Bloomberg) -- Statoil ASA failed to buy North Sea Forties crude even after it bid at the highest level in almost a month. No bids or offers were made for Russian Urals after the grade’s differential to Dated Brent rose to a six-week high yesterday in northwest Europe.

Iraq will ship 17 cargoes of Basrah Light oil for loading in the first half of February from the Persian Gulf, two more than in the second half of January, according to a loading program obtained by Bloomberg News.

North Sea

Statoil was unable to buy a shipment for Feb. 16 to Feb. 18 loading at 15 cents more than Dated Brent, the highest since Jan. 6, according to a Bloomberg survey of traders monitoring the Platts trading window.

Hess Corp.’s Hetco unit didn’t manage to buy Forties for loading on Feb. 25 to Feb. 28 at 10 cents a barrel more than Dated Brent, compared with a parity yesterday, the survey showed.

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 9 cents a barrel less than Dated Brent, up from a discount of 13 cents yesterday, according to data compiled by Bloomberg.

Brent for March settlement traded at $112.22 a barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $111.10 yesterday. The April contract was at $111.76, a discount of 46 cents to March.

Mediterranean/Urals

Urals remained at yesterday’s six-week high of a premium of 15 cents a barrel more than Dated Brent in northwest Europe, according to data compiled by Bloomberg. Yesterday, Royal Dutch Shell Plc failed to sell 100,000 metric tons of Urals for Feb. 16 to Feb. 20 delivery to Rotterdam at 80 cents a barrel more than the benchmark.

A total of 28.06 million barrels, or 1.87 million barrels a day, of Basrah Light will be loaded in the first half of this month, the plan showed. The program comprises 12 cargoes of 2 million barrels each, two shipments of 1 million barrels, two 715,000-barrel lots and one 630,000-barrel consignment.

Total SA sold a 650,000 barrels of Libya’s Mellitah condensate to Mangalore Refinery & Petrochemicals Ltd., a unit of India’s biggest energy explorer, at about $1 a barrel to Dated Brent, said two traders who declined to be identified because they aren’t authorized to speak with the media.

West Africa

Indonesia’s state-owned PT Pertamina issued a tender to buy crude oil, including Nigerian Brass River, for delivery in April, an official document obtained by Bloomberg News showed. The tender will be awarded on Feb. 3.

Qua Iboe crude was at a premium of $2.72 a barrel to Dated Brent, compared with a premium of $2.65 yesterday, data compiled by Bloomberg shows.

--With assistance from Pratish Narayanan in Mumbai. Editors: Rachel Graham, Rob Verdonck

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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