Bloomberg News

Vitol Sells Forties at Lower Price; BFOE March Exports to Fall

February 05, 2012

Feb. 3 (Bloomberg) -- Vitol Group sold North Sea Forties crude at a lower price. OAO Lukoil sold a shipment of Russian Urals in northwest Europe at parity to Dated Brent, less than an offer yesterday.

Daily exports of the North Sea Brent, Forties, Oseberg and Ekofisk crude blends, which make up the benchmark Dated Brent, in March will be 1.3 percent less than this month, loading programs obtained by Bloomberg News show.

North Sea

Vitol sold a shipment of Forties for loading on Feb. 21 to Feb. 23 to Total SA at 15 cents a barrel more than Dated Brent, compared with a premium of 25 cents for a transaction yesterday, according to a Bloomberg survey of traders monitoring the Platts trading window.

Trafigura Beheer BV failed to sell Forties for loading on Feb. 25 to Feb. 27 at 40 cents a barrel more than Dated Brent, 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 25 cents a barrel more than Dated Brent, up from a premium of 18 cents yesterday, according to data compiled by Bloomberg.

Brent for March settlement traded at $112.90 a barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $111.74 yesterday. The April contract was at $112.56, a discount of 34 cents to March.

Shipments of Brent, Forties, Oseberg and Ekofisk for March will total 30.7 million barrels, or 990,323 barrels a day versus 1 million barrels a day in February, according to the plans.

Exports of Forties crude for March will increase by one lot from this month to 24 cargoes, according to a shipping plan.

Crude shipments from Dansk Undergrunds Consortium, the producer part-owned by A.P. Moeller Maersk A/S, are scheduled to climb to six cargoes in March, one more than this month, according to a separate loading program.

Mediterranean/Urals

Lukoil sold 100,000 metric tons of Urals for Feb. 13 to Feb. 17 delivery to Rotterdam to Exxon Mobil Corp. at parity to Dated Brent, the survey showed. Lukoil yesterday sought to sell Urals at a 55-cent premium without success.

Lukoil also bought 80,000 tons of Urals for Feb. 17 to Feb. 21 delivery to Augusta, Italy from Vitol at parity to Dated Brent. The grade was at 5 cents a barrel less than Dated Brent in the region, the highest since Dec. 20, compared with a discount of 15 cents yesterday, according to data compiled by Bloomberg.

OAO Rosneft, Russia’s largest oil producer, issued a tender to sell 600,000 tons of Russian Urals crude for loading in March from the Baltic port of Primorsk, said three traders who participate in the market. Bids will be valid until Feb. 7.

West Africa

Indian Oil Corp., the nation’s largest refiner, issued a second tender to buy crude for loading in April, a document obtained by Bloomberg News shows. The tender closes on Feb. 8 and offers are valid until the following day.

Qua Iboe crude was at $2.63 a barrel more than Dated Brent, compared with a premium of $2.69 yesterday, data compiled by Bloomberg showed.

--Editors: Rachel Graham, 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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